What Does Homeowners Insurance Cover (and What It Doesn’t)?

Many homeowners only discover what their policy covers after something goes wrong. Understanding your coverage before a loss helps you avoid unpleasant surprises and expensive gaps.

The six main coverages in a standard policy

Most U.S. homeowners have an HO-3 policy, the most common type for single-family homes. It usually includes six parts:

1. Coverage A, dwelling: the structure of your home.
2. Coverage B, other structures: fences, sheds and detached garages.
3. Coverage C, personal property: your belongings.
4. Coverage D, loss of use: additional living expenses while your home is repaired.
5. Coverage E, personal liability: injuries or damage you cause to others.
6. Coverage F, medical payments: minor injuries to guests.

Commonly covered events

Fire and smoke, windstorms and hail (in many states with a separate deductible), lightning, theft, vandalism, the weight of snow and ice, and sudden, accidental water damage from plumbing are typically covered.

Common exclusions

• Flooding: excluded from standard policies. Flood insurance is available through the NFIP and private insurers, usually with a waiting period before it takes effect.
• Earthquakes and earth movement: require a separate policy or endorsement.
• Sewer backup: often excluded unless you add an endorsement.
• Gradual damage: slow leaks, rot, mold and wear and tear.
• Pests: termites, rodents and insects.
• Business activities: home businesses often need separate coverage.

How to fill the gaps

• Check FEMA flood maps and consider flood insurance even outside high-risk zones.
• Add a scheduled personal property rider for jewelry, art and collectibles.
• Add water backup coverage if you have a finished basement.
• Consider an umbrella policy for extra liability protection.

Keep a home inventory

Photos, videos and receipts make claims faster and easier. Store them in the cloud so they are safe if your home is damaged. Learn more in our homeowners insurance guide.

This article is for general information only and is not insurance, legal or financial advice. Rules and prices vary by state and insurer. Check your policy and talk to a licensed agent before making changes.