What Exactly Does Homeowner’s Insurance Cover?

Homeowner’s insurance provides financial protection in the event of your home getting damaged due to any reason. The policy also provides legal protection if you or your family member are legally held responsible for injuries caused to others.

Most homeowner’s insurance policies cover damages caused by factors such as fire, windstorms, lightning, and theft. Unfortunately, natural occurrences such as floods and earthquakes are excluded from this policy. However, for the threats that are not covered in the policy, there may be supplemental insurance which you can purchase and get yourself completely covered. Here is a list of all the factors that a homeowner’s insurance policy covers.


1. Dwelling coverage

Pays to repair or rebuild your home including features such as repair of electrical problems, plumbing, and even air conditioning at times—provided they are mentioned in the policy. It's important to buy enough coverage cover the cost to rebuild.


2. Personal property coverage

This clause makes sure to reimburse you for the personal items that may get damaged or destroyed by any hazard. Personal items like your furniture, clothes, sporting goods and electronics fall under this clause of the policy.


3. Loss of use coverage

This coverage pays your additional housing and living expenses if you have to move out of your home temporarily while it is being restored from the damage caused.


4. Liability insurance

This insurance coverage helps protect your assets and can be used to cover your defence costs in the event of a lawsuit being filed against you or your family members—especially when you or your immediate family is responsible for causing injuries or damage to other people or their property.

5. Additional home insurance coverage

There are a number of additional coverage options which you can add on to your policy to help you meet your insurance needs.