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  • Stephen Gonzalez

Homeowners Insurance: What Is It And How Are You Covered?

Updated: Jun 19, 2021

Homeowners insurance provides financial protection for your home and other important assets against disasters, theft, and accidents for which you’re liable. Most lenders also require home insurance before they'll let you take out a mortgage on a house.


Homeowners insurance coverages explained.

A basic homeowners insurance policy includes six coverage provisions that cover your home's structure, personal property, additional living expenses, and legal and medical expenses.


Dwelling coverage

Dwelling coverage is the part of your policy covering the cost of repairing or rebuilding your home if it’s damaged or destroyed by a fire, hurricane, or another disaster listed in your policy. With dwelling coverage, your home’s foundation, roofing, walls, deck, floors, cabinetry, plumbing, water heaters — basically anything built into the home is covered up to the limit in your policy.


Other structures coverage

Other structures protection pays to repair or rebuild structures separate from your home, such as a detached garage, guest house, shed, or fence.


Personal property coverage

Homeowners insurance also includes coverage for your personal belongings in your home and anywhere in the world. If someone breaks into your home and steals your valuables, the cost of replacing them is covered; if someone breaks into your hotel room or storage unit and takes your luggage, that is also covered. If a guest stays in your home, personal property coverage may also cover their belongings if they’re damaged or stolen.