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What Does Homeowners Insurance Cover?

Updated October 24, 2019 . AmFam Team

Your home is the center of your world — the place where family and friends meet, and memories are made. That’s why it’s worth protecting with homeowners insurance. Let’s see how the right coverage may help protect what matters most to you.

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Protect Your Home and Possessions

Homeowners insurance helps provide financial protection for your home and possessions in the event of sudden and accidental damage. It may help you smoothly recover from unexpected events like fire, lightning, hail, theft or vandalism.

Usually, floods and earthquakes aren’t included in your policy, but you may be able to add extra coverage, so you’ll have the protection you need in case an unexpected loss occurs. Different policies provide different types of coverage, so be sure to review your options with your American Family Insurance agent to find customized coverage that fits your needs.

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Get to Know Homeowners Insurance

It’s important to know what coverage you’re getting with your homeowners policy. To get you up to speed, we’ve answered some commonly asked questions about homeowners insurance coverage.

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Am I covered for emergency housing?

If you are forced out of your home due to damage covered by your policy, your American Family homeowners insurance may also help pay for additional living expenses, such as a hotel, while repairs are being made.

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Is my small business covered?

American Family offers a Home Office, School or Studio endorsement that specifically helps protect a home business. This endorsement offers additional liability coverage and protection for business furnishings and equipment.

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Is mold or insect damage covered?

Homeowners policies provide coverage for events that are sudden and accidental. They’re not designed to cover losses from improper maintenance or normal wear-and-tear. Generally speaking, anything that occurs over time such as mold, rot and insect infestation is not covered.

A concerned homeowner looking at a leaking pipe under her sink.

Does homeowners insurance cover water leaks?

If a leak is sudden — such as a water pipe that suddenly bursts — insurance may help cover the water damage. To help protect the property in a lower level, consider adding an American Family Backup and Overflow coverage. There are several versions of this coverage based on where you live.

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Common Homeowners Coverages

You can choose from a wide variety of coverage options to get protection that’s just right for you. Here are a few common homeowners coverages you’ll choose from:

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Dwelling Coverage

This may help provide coverage in the event your home and attached structures are damaged — including heating, plumbing, electrical wiring and more. Keep in mind, you should buy enough dwelling coverage to cover the cost to rebuild should the unexpected happen to your home.

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Other Structures Coverage

This helps cover damage to stand-alone structures like fences, tool sheds or detached garages. A standard homeowners insurance policy typically won't cover these things, so you'll want to purchase other structures coverage to help protect those buildings and structures.

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Personal Property Coverage

This coverage may help pay for the cost to repair or replace belongings that are stolen or damaged, which could include furniture, electronics, clothing and more. You get a limited amount of coverage with your standard homeowners insurance policy, but you can add more coverage depending on the value of your personal property and how much you want to protect.

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Loss of Use Coverage

This coverage may help with additional living expenses, including hotel costs and meals, in case you have to temporarily relocate while repairs are being made to your home.

A person who has just fallen, lying on a living room floor while holding their shoulder.

Liability Insurance

This may help cover you in the event you or your family members are responsible for causing injury or damage to another person or their property. For instance, let’s say your neighbor falls on your icy sidewalk and gets injured. If you end up having to pay for costly hospital bills and physical therapy, liability coverage may help financially protect you.

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Understanding your home insurance means you know just how your hard-earned dreams are being protected. Connect with your American Family Insurance agent to help you build a customized homeowners policy that safeguards your unique home and lifestyle. So, what are you waiting for? Protect what matters most today!

This information represents only a brief description of coverages, is not part of your policy, and is not a promise or guarantee of coverage. If there is any conflict between this information and your policy, the provisions of the policy will prevail. Insurance policy terms and conditions may apply. Exclusions may apply to policies, endorsements, or riders. Coverage may vary by state and may be subject to change. Some products are not available in every state. Please read your policy and contact your agent for assistance.

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