What Does Homeowners Insurance Cover?

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 can help protect what matters most to you.

Protect Your Home and Possessions

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

Usually, floods and earthquakes aren’t included in your policy, but you can add extra coverage so you’ll have the protection you need in case the unexpected 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.

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.

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.

Is my small business covered?

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

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.

Does homeowners insurance cover water leaks?

If a leak is sudden — such as a water pipe that suddenly bursts — insurance generally covers 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.

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:

Dwelling coverage

This provides 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.

Other structures coverage

This covers 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 protect those buildings and structures.

Personal property coverage

This coverage pays 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.

Loss of use coverage

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

Liability insurance

This covers 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 helps financially protect you.

Understanding your home insurance means you know just how your hard-earned dreams are being protected. Connect with your American Family Insurance agent (Opens in a new tab) 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!