Family of four eating breakfast at the table in their home.

What Is Homeowners Insurance: A 101 Guide

Updated January 1, 1 . AmFam Team

Use American Family Insurance’s homeowners guide to learn how home insurance works, what it covers and if it’s required. From coverages to cost, we’ve highlighted everything you need to know about homeowners insurance to give you confidence in your coverage.

Your home is one of the most valuable assets you own, and having the right home insurance in place is key to protecting everything you’ve worked so hard for. Imagine if something damaged your home, like a fire or tornado. Would you be able to rebuild or replace your things out of your own pocket? Typically not. Home insurance is a type of property insurance that covers damage to your home and the items inside of it. It also provides liability coverage against accidents that take place in your home, on your property or that result from your activities.

In order to help you better understand how you’re protected, we’ve highlighted some must-know info about home insurance.

How Does Homeowners Insurance Work?

Before you can have confidence in your coverage, you’ll need to understand how your homeowners insurance works. Here’s some key information about home insurance that you’ll want to familiarize yourself with:

What Does Home Insurance Cover?

Your home insurance provides you with financial protection in the event of an unexpected accident or disaster. It covers four main incidents (we’ll dive deeper into these later):

  • Interior damage
  • Exterior damage
  • Loss or damage of your personal assets/belongings
  • Liability

What Is a Homeowners Insurance Policy?

This is the legal document that entails exactly how your home is protected. Just as every home is unique, so is your coverage. Typical policies provide open peril coverage on the building and named peril coverage on personal property. If you choose to schedule some of your more valuable personal property, then it would also have open peril coverage. What do each of these mean?

Peril. For starters, a peril is a kind of risk — consider it an accident or misfortune — covered by your insurance policy, which exposes you to potential damage, injury or loss. Common perils include fire, theft, vandalism, wind and hail.

Loss. You’ll often hear the word “loss” when learning about insurance, so it’s important to understand its meaning. A loss is the injury or damage you, the insured, sustains due to a peril. The primary purpose of your home insurance is to protect you against losses.

Open perils. This type of coverage offers a wide range of protection because all perils are covered except those that are specifically excluded in the policy. For example, floods are excluded by most property policies.

Named perils. With this type of coverage, only the specific types of risks named in the policy are covered. For example, theft, vandalism, wind, fire and lightning. It’s therefore important to understand your risk and what’s covered and what’s not covered within this type of policy.

Scheduled property. Your home insurance provides coverage for your personal property, but typically will limit the dollar amount that’ll be covered for certain types of valuable property, such as jewelry, silverware, firearms or camera. Scheduled personal property coverage is an add-on coverage that offers a specific dollar limit for each item insured, as well as providing coverage for a greater number of risks (open peril vs. named peril).

Filing a Home Insurance Claim

After you face a loss, you’ll want to get things back to normal as soon as possible, right? That’s why you’ll file a homeowners insurance claim. An insurance claim is a request to your insurance company to compensate you for a covered loss. Filing a claim is as simple as calling up your insurance company’s claims department and speaking with a representative, or filling out an online claim submission.

Once you file your claim, your insurance company will usually have an adjuster come and inspect the loss. An adjuster is a company representative who is assigned to inspect your property to decide how much the insurance company should pay for the loss, based on the terms and limits of your policy.

Types of Homeowners Insurance

Your standard homeowners policy has built-in coverage to protect your property, belongings and offer liability coverage. From there you can build upon your protection by choosing additional coverages.

Property Coverage

This includes coverage for damage inside your home, for example, water damage to your hardwood floors due to a dishwasher leak. Property coverage also protects the exterior of your home, such as a windstorm causing a tree to topple onto your roof.

Your home is more than your house, it’s all the things inside of it that make it yours. That’s why with property coverage, your personal property is also covered, like furniture, clothing, electronics, musical equipment, etc. Since the value of your personal property adds up quickly, consider creating a room-by-room inventory of your belongings. This way, you’ll know just how much your things are worth and be able to have an accurate coverage amount in the event of the unexpected.

It’s important to note that your personal property will be covered for its actual cash value, which is what your item is worth today. That value includes consideration of factors such as age and condition. For example, a 10-year-old sofa is usually not worth as much as a 5-year-old sofa. But a 5-year-old-sofa that was used every day might be worth less than a 10-year-old sofa that was rarely sat on and usually kept covered. You can opt for replacement cost value to replace your belongings, which many people choose because it pays you the amount need to replace your damaged personal property with new property of the same type, kind and quality. Learn more about actual cash value and replacement cost value.

And, a benefit to this coverage is that your belongings will be protected no matter how far from home you are. For instance, if your luggage is stolen from your hotel room three states away, your homeowners personal property coverage helps cover you for the loss up to your coverage limit. You’ll even be covered if you’re out of the United States, but there’s generally a 10% cap on your protection, so if you think you’ll want more than that, talk with your insurance agent about travel insurance.

Remember scheduled property from above? Your personal property is where you’ll decide if you’ll want more coverage for certain items (the items with limited coverage will be listed in your policy). For example, a home insurance policy typically provides limited coverage for things like your jewelry. If you need coverage above the sublimit amount, you can work with an agent to “schedule” your jewelry and increase your coverage, as well as add a broader range of protection for different types of risks.

Liability Coverage

The liability coverage on your homeowners policy provides protection if you’re found legally responsible for injuring someone or damaging their property. Let’s break it down:

Medical bills. Your homeowners policy includes liability protection for injuries to other people that happen on or away from your property. For instance, let’s say a guest slips on your icy staircase and they break their wrist, or your child accidentally runs into someone on their skateboard — your liability insurance will help pay for their medical bills.

Pain and suffering. Your liability coverage also protects you if the person you injured sues you for pain and suffering as a result of an accident. This includes not just physical pain, but also emotional, mental, insomnia, inconvenience, fear, grief or worry.

Wages. Let’s say that person who slipped and fell on your icy steps was a chef, and since they broke their wrist, they aren’t able to fire things up in the kitchen for a while. If you’re found legally liable for their injuries, your liability coverage helps pay for the wages they’re losing.

Legal costs. If you’re sued for an accident, your liability coverage helps cover legal costs, such as paying to defend you in court.

Damage to another’s property. Liability coverage also protects you against financial loss if you’re legally responsible for damage to someone else’s property, like if your future baseball star throws a ball through the neighbors window and breaks an expensive vase. This coverage offers protection to you, your family members or your pets. Find out more about dogs and homeowners insurance.

Home liability coverage typically doesn’t cover a purposefully inflicted injury you cause someone. And remember that your personal liability coverage has a set dollar limit, so you’d be responsible for paying anything above that amount. Having a personal umbrella liability policy can provide peace of mind that you have adequate coverage, since it offers an added level of liability coverage above the limits of your homeowners policy.

Additional Coverages

While your home insurance protects you in many ways, you have the option to customize it with coverages that offer even more protection, based on your own needs. Take a look at some popular additional coverage options available.

Flood insurance. It’s important to note that your homeowners policies typically don’t provide coverage for damage due to flooding or rising water. Flood insurance is available through the National Flood Insurance Program (NFIP). An agent can help obtain a flood policy should you decide it’s needed.

Personal injury. This coverage protects you against allegations like libel, slander, false arrest, detention or imprisonment, malicious prosecution, wrongful eviction or wrongful entry, and associated legal costs.

 is an inexpensive option that’ll pay off if you or a family member face a lawsuit.

Roof replacement cost coverage for windstorm and hail. Windstorm and hail is one of the most common causes of damage to roofs. Having roof replacement cost coverage will pay to replace your roof rather than just the roofs actual cash value at the time of the loss.

Sewer backup, septic backup or sump pump overflow coverage. If your sewer or septic backs up or your sump pump overflows, our backup and overflow coverage can help with the cost of resulting damages. This coverage is especially important for those with a finished basement to help protect your investment.

Detached structures. This includes coverage for sheds, fences, gazebos, swimming pools, detached garages and more, if you have them.

Identity theft protection. Protect your good name and your credit with this low-cost coverage, which protects you against the high costs of restoring your finances and identity.

Is Homeowners Insurance Required?

Unlike car insurance, where almost every single state requires some amount of insurance, homeowners insurance isn’t required by law. However, if you have a mortgage on your home, you’ll almost always be required to have proof of insurance on your property before your lender will issue your mortgage. This is because your mortgage company is technically part owner of your house, at least until you’ve paid it off. And they, just like you, want to make sure it can be kept in good condition to avoid a decrease in value.

Of course, even if you don’t have a mortgage, having home insurance is a smart move and can provide peace of mind that your home and contents are protected.

Homeowners Insurance Cost

Once you decide on your levels of coverage, your premium will be determined. Simply put, a premium is the amount of money you’ll pay for the insurance policy you’re purchasing. You can choose to pay on a monthly basis, semi-annual, or you can choose to pay 100% of the premium upfront, which could earn you a discount!

How Is the Cost of Home Insurance Calculated?

There are a variety of factors an insurance company will look at when determining your premium:

Location. Your home will be subject to different risks depending on its location. For instance, if you’re in an area prone to wildfires or earthquakes your premium will reflect this.

Characteristics of your home. Certain features of your home also affect your premium, from the age of your roof to its square footage and the materials it is constructed of.

Home protection devices. Do you have a burglar alarm system, or is part of your home sprinklered? If so, you could earn a discount on your premium.

These are just a few of the factors your insurance company will look at, but what’s most important is making sure you have the coverage in place to properly protect your home.

How Is Home Insurance Paid?

You can choose to escrow your insurance premium with your mortgage payments. This is when you choose to tack on your insurance payments with your mortgage check, so your lender can pay your insurance premium out of your escrow account. Escrow is when you use a third party (someone who is neither the buyer nor the seller) to hold something of value. They act is the “middle man” to safeguard both your and your lender’s interest, and their job is to make sure that everyone sticks to their end of the bargain.

Just want to make the payments on your own? With American Family Insurance, you can choose to make monthly, semi-annual or payments in full. Not to mention, when you pay your premium in full at the time of purchase, you can earn a customer full pay discount. We make paying your premium easy with a variety of payment options, like automated payments, one-time payments, an automated phone system, mail payment or choose to make a payment electronically through your financial institution or bill payer service of your choice. And when you enroll in My Account, you can manage your bills online and set up your payments however you like.

Do you feel more confident about home insurance? We hope so! Now it’s time to shop around to compare insurance plans and pick one that works best with your needs and budget. Our advice? Connect with an American Family agent (Opens in a new tab) — they’ll be able to help walk you through the process and build you customized coverage that matches your specific needs.

Related Articles

  • Roof and gutter covered in ice.
    Roof and gutter covered in ice.
    Protect Your Roof: How to Prevent & Remove Dams

    Icicles may give your home a quaint look in winter, but they’re symptomatic of a bigger problem — ice dams. Ice dams can damage your home because they prevent melting snow and ice from draining properly. Ice dams can lead to mold, rot and water leaking into your attic and nearby ceiling. But don’t panic just yet. We’ve highlighted how to prevent and remove ice dams and ways to mitigate damage to your home from ice dams.

    Red house in the snow.

    What is an ice dam?

    What causes ice dams? Ice dams form when attic air becomes warm enough to heat the underside of the roof, which in turn causes the snow on top of the roof to thaw. The melting snow runs down the roof until it hits an eave or roof edge that is below the freezing point. The melted snow refreezes and creates a ridge of ice — an ice dam — which blocks further runoff. As snow continues to melt, it has nowhere to go but up, where it starts seeping under the shingles and into the house.

    Ice dams typically form near the edge of the roof when water runs off the warmed roof and then freezes again at the eaves, but this isn’t the only place you’ll find them. They can also form on gutters that don’t drain completely and around skylights because of the less-insulated design.

    Icicles hanging from roof's gutter.

    Why are ice dams bad?

    Ice dams can cause big problems for your home. The weight of these heavy icicles has been known to rip gutters from roofs and cause damage to the shingles on your home. But the damage doesn’t stop there. Damaged drywall and plaster, water-stained ceilings and peeling paint are also the result of ice dam damage.

    Ice dams increase the chance of water seeping into your attic and soaking your insulation. This significantly brings down its R-value or its heat-retaining/insulating capacity — and worse yet — it can cause structural damage if left unchecked. Over the years, the effects of ice dams can lead to blistering of the interior and exterior paint. It can also spur the growth of mold and mildew, as well as weaken structural beams and rafters. Take into account the high-cost contractors will likely charge to fix the problem and you’ll begin to understand why it’s wise to take a proactive approach to managing ice dams.

    Person inspecting roof for damage. 

    How to Identify Ice Dam Damage to Your Home

    If you suspect that your home has an ice dam, it’s important to first detect signs of ice dam leaks and assess the extent of the damage. It may be necessary to bring in a contractor for an estimate in order to have a solid understanding of how extensive the damage is. In the meantime, here are some DIY ideas to try out:

    Snap some photos

    From the exterior of your home, take a few photos that you can use as a reference to look for signs of water damage on the interior. Look for stains on your ceilings and walls near the position of the ice dam.

    Check your attic

    Get into the attic and look for water dripping or staining on the rafters and roofing underlayment. It can be helpful to flag these areas so that you’ll be able to locate them later.

    Inspect your chimney

    See if you can find evidence of ice forming around the base of the chimney, where it meets your roof. If the flashing has come loose or isn’t sealed well, this can be another place where ice and meltwater can do some damage. From inside the attic, review the way heat escapes from around the perimeter of your chimney. If you can see daylight through that seal, take action to seal it up as soon as possible.

    Snow and ice on a roof and gutters.

    How to Prevent Ice Dams

    The basic principle of preventing ice damns is keeping your roof cold. If your roof is cold, snow won’t melt as fast and an ice ridge will be less likely to form. Keeping your roof cold isn’t always as easy as it sounds, so we’ve got ice dam prevention tips for you.

    Ice dams are usually created when the attic is warmer than the air outside. Ideally, the insulation keeps warm air in your home and out of your attic. The venting system in your attic helps keep it cool and hopefully close to the temperature outside. Together, this clever combination keeps snow on the roof from melting — and if the snow doesn’t melt, then ice dams shouldn’t form.

    The key to preventing ice dams on roofs and in roof valleys involves increasing ventilation in your attic, adding insulation and sealing air leaks. This is not a quick fix but a permanent correction, so it requires some effort and, most likely, professional assistance. However, the long-run benefits include a roof free of ice dams and a more energy-efficient home. We’d call that a win-win.

    Worker insulating an attic.

    Follow these 10 steps to avoid ice dams:

    1. Increase ventilation. Keeping cold air moving under the roof is the first step toward preventing ice dams. The ridge and soffit vents are designed to do this, but they might require a professional inspection and baffles to improve the flow and provide a clear path for the air.

    2. Cap the attic hatch. If you have an unsealed attic hatch, a weather-stripping cap will keep the heat in your home and prevent it from creeping into the attic. Remember, you don’t want warm air coming up into the attic and melting snow on the roof, causing freezing and ice dams.

    3. Examine exhaust systems. Most homes have exhaust ducts in the bathrooms, kitchen and laundry room. These vents should all lead outdoors through the roof or walls. If they’re vented to the soffit, you’ll need to have that changed for permanent ice dam remediation.

    4. Check the insulation. Check to see if your attic floor needs more insulation. Maintaining this protective barrier at optimum depth helps your home stay warmer and more energy efficient while keeping the cool air in the attic.

    Worker fixing a chimney.

    5. Install chimney flashing. Do you have flashing, a metal strip that prevents water penetration, between your chimney and the house? If not, it’s time to add it and seal any gaps where ice, water and cold wind can sneak in. Remember, you’re working around the chimney, so using fire-safe products is essential.

    6. Caulk leaks. Anywhere electrical cables, vent pipes, satellite dishes and other penetrations occur in the roof, you stand the risk of having gaps and air leaks. Caulk these areas with a fire-stop sealant to keep them as air-tight as possible.

    7. Check the ducts. Make sure all ductwork through the attic is properly sealed and insulated. If you have an older home, it pays to check your heating ducts to make sure they’re not bringing excess heat into the attic.

    Worker fixing a light in the ceiling.

    8. Look at the lights. If you have can lights or other light fixtures in your ceiling that are not sealed, you’re releasing heat into the attic. You might also be putting your home at risk for a fire. For increased safety, change these lights to an IC-rated fixture, which allows for direct contact with insulation and insulate over the lights.

    9. Add an ice-and-water barrier. If you’re reroofing, it’s time to add an ice-and-water barrier. This is a great layer of protection. While many regions now require it, it wasn’t always mandated, so your home may not have one. An ice-and-water barrier needs to be added under a roof, so it’s cost-prohibitive if you’re not reroofing — but if you are, it’s the perfect time to add it.

    10. Keep your roof in good shape. One of the best answers to prevent ice dams is to maintain your roof well and ensure you have enough insulation to keep warm air from getting through. Installing a metal roof with a steep pitch can minimize your risk of leaks caused by ice dams.

    Person on a ladder fixing his gutters.

    Quick Fixes to Get Rid of Ice Dams

    While your goal is to permanently stop ice dams, you might need to use a few quick fixes in the meantime. These tips help you stay on top of ice dams and prevent damage to your home.

    Use a snow rake. After a heavy snowfall, give your roof a break by raking the snow off. This inexpensive tool pulls down the snow so it can’t melt and refreeze into an ice dam. Only use a snow rake from the ground or your deck, never from a ladder. And be careful not to break shingles, which can be brittle in bitter cold temperatures.

    Try calcium chloride. Avoid using rock salt as it can damage paint and metal on your home. But calcium chloride can help melt ice and get water flowing again.

    Install heat cables. Mount heat cables along the edge of your roof and through the downspout. That enables snow to melt and run down the proper channels.

    Steam it off. If you have an ice dam already and you can see that there is a leak coming into your home, you’ll want to remedy it as soon as possible. Check with local roofing companies to see if they have a steamer that can melt the ice off the roof without damaging your shingles. If it’s too big a job for just you, hire a roofing professional to steam off ice dams.

    Not having to worry about ice dams can be a huge relief in the winter months. You instantly free yourself from the immediate issues of a damaged roof and leaks. In addition, your home becomes more energy efficient and comfortable as the air quality improves if moisture isn’t sneaking in and forming mold and mildew.

    Person on a roof holding hail in their hand.

    Does insurance cover ice dams?

    If an ice dam damages your roof, don’t fret. It’s common for homeowners insurance to cover ice dam damage. American Family’s standard homeowner’s policy covers sudden and accidental damage from leaking roofs and damage from the weight of ice, snow or sleet.

    If you have more concerns about your roof insurance coverage or you’d like to learn how your homeowners insurance protects your roof and everything under it, connect with your American Family Insurance agent — they’ve got the answers you need.


  • Row of colorful new townhouses.
    Row of colorful new townhouses.
    Do I Need Homeowners Insurance for a Townhouse?

    Whether your townhouse is a rental, in a condo association or one that you own, you’ll need insurance for it. While homeowners insurance for a townhouse might seem appropriate, there are a few factors to consider before purchasing insurance. If you’re the owner of the townhome and aren’t part of a condo association, homeowners insurance is right for you — but if you’re part of a condo association, you’ll want to look at condo insurance. And finally, if you rent your townhome, go for renters insurance.

    New townhouse on a sunny day.

    What is the difference between a condo and a townhouse?

    Condos and townhomes may seem similar, but they have a few key differences. A condominium is typically a living space, either a townhome or apartment-style space, that is owned by a condo association and has shared common space among residents that their condo association fees pay for. If a townhome isn’t owned by a condo association, it’s not a condo.

    Townhomes are typically multi-story buildings that share at least one wall with another townhouse. They look a bit like row houses without easements between the buildings. They can be owned by a condo association, rented from a landlord or owned by individual homeowners.

    House with roof damage from a fire.

    What is covered under townhouse insurance?

    There generally isn’t such a thing as “townhouse insurance,” so to understand what’s covered, you’ll need to consider your living situation. If you’re living in a townhome that isn’t owned by a condo association, you’ll want to look into renters or homeowners insurance.

    If you own your townhouse:

    If your townhouse is solely yours and not part of a condo association, you’ll need a homeowners insurance policy to help protect your property. Home insurance for townhouses covers the same things that it would for a regular house, including:

    • Damage from fire, smoke, wind and other disasters or hazards
    • Damage to your home’s structure
    • Theft of or damage to your personal belongings
    • Liability protection if someone is injured on your property

    You can add other coverages to supplement your homeowners policy that can help cover expenses associated with appliance breakdown, flooding or even identity theft. Learn more about what homeowners insurance can help protect.

    For rent sign on townhouse.

    If you rent your townhouse:

    If your townhouse isn’t part of a condo association and you’re renting it, renters insurance can help you protect your personal property in the event of an accident or theft. Renters insurance for a townhouse can help cover things like:

    • Damage to your personal property from a fire
    • Replacing your personal property after theft
    • Liability protection if someone is injured in your townhome

    Even when you’re away from home, your renters insurance follows you wherever you go.

    People around a table, having a meeting.

    If your townhouse property belongs to a condo association:

    Condo association policies typically only cover common areas and the exterior of the building you live in, although some will cover the interior — but only in its original state. To be sure your personal property and any updates to the interior you’ve made are protected, like granite countertops to replace the original vinyl, you’ll want to get your own condo insurance policy.

    Condo insurance coverage helps protect the things not covered by your condo association’s insurance policy. This includes personal property and personal liability coverage, which can help cover expenses if someone is injured on your property. Even if your condo association insurance policy covers some things that a condo insurance policy might, you should consider condo insurance to take care of any gaps in coverage.

    New townhouse living room.

    Get the Townhouse Insurance Coverage You Need

    If you need help assessing your townhome to understand the right type and amount of protection you need, connect with your American Family Insurance agent. They can help you figure out if you need condo, renters or homeowners insurance and what kind of additional coverages you need to protect what matters most.

  • finished basement
    finished basement
    What Is the Ideal Humidity for a Basement?

    The humidity levels in your basement can impact your home and everyone living inside. It can also affect your valuables, electronics and appliances. In this article, we'll discuss ideal basement humidity levels. We'll also give tips to help you address, monitor and manage moisture in your basement.

    Father and son smiling in living room

    Normal Basement Humidity Levels

    Ideal basement moisture levels are between 30 - 50%. Anything below 30% is too low and can lead to structural changes in your home, causing gaps between windows and doors. Aside from health issues, insufficient moisture levels can also cause wood floors to creak and damage your belongings.

    Moisture levels above 50% can lead to mildew, mold and bacteria growth. That environment can cause serious health issues. Excessive moisture can also damage walls and carpets, causing your home and belongings to rot.

    Locating Your Basement Humidity Source

    One of the best ways to address basement humidity levels is to manage the moisture at its source. While consulting with a professional is always helpful, you can start your search using the following methods.

    Seal Off Drafts

    Gaps and cracks in windows, doorways and walls can cause excess moisture to collect in your basement. Sealants like caulking and weatherstripping can help close the gaps and fix the issue.

    Maintain Your Sump Pump and Vents

    If your sump pits and drains are not airtight, the excess moisture from the pipes can create a humid environment. Maintaining your basement's vents and sump pump can help you manage moisture levels. Consider getting it checked by a professional once every three to four months for optimal performance. 

    Repair Leaks

    Leaking pipes, washing machines and water heaters can affect your basement's humidity. They can also cause other issues, such as a spike in your utility bills.

    To spot them, look for wet spots, rust or condensation around these areas. Beyond helping you maintain healthy basement humidity levels, it helps you catch costly leaks early.

    Clean Gutters

    Clogged gutters can pool rainwater and melting snow around your home’s foundation. Consider positioning gutter spouts to draw water away from your home. Additional outside water can saturate your basement floors and walls, increasing moisture levels.

    woman in living room with cat and dehumidifier

    Managing Your Basement Humidity Levels

    Some humidity issues are more severe than others. However, there are several accessible tools you can use to maintain appropriate moisture levels in your basement and home. Consider the following tips.


    Several dehumidifier types, such as refrigerant, desiccant and whole-house ventilation systems, are available. They can help you manage moisture levels in your entire home, a single room or a crawlspace. All serve one purpose: To remove excess moisture from the area.   

    Before purchasing yours, consult an expert. They can help you find a suitable model and size that best addresses the humidity in your basement.

    Exhaust Fan

    Another excellent way to manage your basement's humidity levels is to keep it well-ventilated. Installing an exhaust fan is a great option if you can't accomplish that naturally.

    An exhaust fan should be installed in a window or exterior-facing wall to draw the moist air away from your basement. As a bonus, exhaust fans can circulate the air, which helps control unwanted odors.

    Chemical Absorbents

    If you need a fast-acting, inexpensive, moisture-removing option, chemical absorbers, such as silica gel, may be able to help. They're typically sold in home improvement stores and can be placed in other parts of your home as well.

    Humidity Monitor

    A humidity monitor can help you track your basement's humidity levels. Some dehumidifiers and exhaust fans come with them built in. You can also buy a stand-alone model that hangs on your wall.

    Water Leak Detector

    Water leak detectors help you catch leaks early and boast a variety of capabilities, such as sending real-time alerts to your phone.

    You can install them on sinks, appliances and water heaters. Getting one may also qualify you for our smart home discount.

    father and daughter doing laundry

    How American Family Insurance Can Help Protect Your Home

    Our standard home insurance may help protect you from sudden, accidental water damage. Qualifying events may include burst pipes or broken-down appliances.**

    If you want more protection from unexpected losses, talk to your American Family agent about the following coverages:

    • Hidden Water coverageProvides a broader net of protection for leaks you can’t see within the walls, floors, ceilings, cabinets or anywhere else that isn’t visible in your home.***
    • Inland Flood coverage: Helps you recover after a flash flood or other qualifying event.*** 
    • Flood insurance: With the National Flood Insurance Program, we offer flood damage protection for your home and possessions.†
    • Water back-up coverage: Helps mitigate the cost of repairs caused by water coming back into a home due to a backed-up drain or an overflowing sump.* 

    mother and daughter putting toys away

    *Coverage provided by adding the Inland Flood optional endorsement. This endorsement does not satisfy mandatory flood insurance coverage should it be required by your federally regulated lender for your home mortgage or loan. This insurance product is not affiliated with the National Flood Insurance Program (NFIP). Please check with your agent and read the policy and endorsements for exact details on coverage limits and exclusions. Coverage applies after the property deductible has been met.

    *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

    **Hidden Water Damage coverage is an optional coverage. May not be available in all states. Some restrictions apply to seasonal homes and manufactured homes. The leak must occur from within a plumbing, heating, A/C, fire sprinkler or a home appliance. Refer to your policy documents for coverage limit details. Coverage applies after the property deductible has been met. Mold damage limited to coverage limits provided by your homeowners policy.

    †American Family Insurance is a participating company in the National Flood Insurance Program (NFIP). NFIP is managed by the Federal Emergency Management Agency (FEMA), a component of the U.S. Department of Homeland Security (DHS). Flood insurance is a separate policy underwritten by NFIP.

  • a woman checks food expiration date
    Reimbursement for Power Outage Food Loss

    Power outages can cause a major disruption in your home — especially if they last for days! It may even result in damage or loss of frozen and refrigerated foods. The good news is your homeowners insurance may be able to help you recoup the losses.

    Let’s take a look to better understand if loss of food due to power outages is covered under your homeowners insurance policy.

    Insurance Coverage for Food Spoilage and Food Loss

    Your standard homeowners policy will provide some coverage for food loss due to a power outage or a mechanical failure of the refrigeration equipment — usually $500 or $1,000. So whether your power outage is caused be a tree in your yard falling on the line, or is from an outage that occurs off your premise, you’ll have some protection for spoiled food that results.

    Will a power company pay for spoiled food if they caused it? Actually, yes, sometimes utility and power companies reimburse the cost of food if they were at fault for the power outage. If that’s the case, it’s beneficial to reach out to see if reimbursement is a possibility.

    If your refrigerator malfunctions for reasons other than a power outage, your home warranty might cover any food spoilage. And while your homeowners insurance will provide some coverage, adding equipment breakdown coverage increases your limit to $10,000 for food spoilage caused by power interruption or mechanical failure.

    Submitting a Food Loss Claim

    If you plan on submitting a food loss claim, expedite the claim process for food spoilage by having the following on hand:

    • Documentation of the food that was lost
    • Pictures of the loss if possible
    • An estimated expense of the lost food
    • Any receipts for expensive items — like steak or lobster

    Compensation for Food Loss

    Remember that your homeowners insurance only covers up to the specified limit on your policy. For example, coverage for spoiled food has a limit of $1,000, meaning if your loss is above that amount, the most you’ll be paid is $1,000. Keep in mind that you may have to pay a deductible before your insurance will cover the rest. Knowing how much your deductible is and your coverage limit for spoiled food will help when deciding if it’s worth it to file a claim for food loss reimbursement.

    Get Insurance Coverage for Power Outage Losses

    Your homeowners insurance protects you in many ways — find out more about how the right homeowners coverage can bring you peace of mind.

    Not sure if your current policy covers food spoilage? Set up a personal insurance review to ensure you're properly protected.