Buying your first home is exciting—but it also comes with responsibilities, like getting homeowners insurance. If you’re unsure what your policy actually covers (and what it doesn’t), you’re not alone.
Let’s break it down in simple terms so you know exactly what to expect.
What Does Homeowners Insurance Cover?
Homeowners insurance protects your home and belongings from unexpected disasters. Here’s what it usually includes:
1. Your House (Dwelling)
If your home is damaged by a fire, storm, or other covered event, your insurance will help pay to repair or rebuild it. This includes walls, ceilings, floors, roof, and built-in systems.
2. Other Buildings
Got a shed or fence? These are also covered—usually up to 10% of your total dwelling coverage.
3. Stuff Inside Your House
Your furniture, electronics, clothes, and appliances are covered if they’re stolen or damaged by a covered event like fire, theft, or lightning.
Pro Tip: Keep receipts or take photos of valuable items—it’ll help if you ever file a claim.
4. Extra Living Costs
If your home becomes unsafe after a covered disaster, your insurance can pay for temporary housing, meals, and more while it’s being repaired.
5. If Someone Gets Hurt at Your Place
Accidents happen. If someone slips on your icy steps or gets hurt in your yard, your policy can help pay for medical bills and legal costs.
What’s Not Covered? (The Part They Don’t Always Tell You)
Here’s what your standard policy doesn’t include:
1. Floods
Flood damage isn’t covered. If you live in a high-risk area, look into separate flood insurance through the National Flood Insurance Program (NFIP).
2. Earthquakes
Most standard policies don’t include earthquake coverage. You’ll need an extra policy for that too.
3. Wear and Tear
If your roof is 20 years old and starts leaking, that’s considered wear and tear—not a covered event. Regular maintenance is your job.
4. Termites and Mold
Damage caused by pests or mold is usually excluded—unless it’s directly caused by a covered event.
5. Business Stuff
If you run a side hustle from home, your business equipment and liability might not be covered. You may need separate coverage.
Extras You Might Want to Add
Ask your insurance agent about optional add-ons:
- Water backup coverage
- Scheduled coverage for expensive jewelry
- Home office protection
- Identity theft support
Final Advice for First-Time Buyers
Read your policy carefully and ask questions. Don’t just buy the cheapest plan—make sure you’re covered for what matters to you. Homeowners insurance is like a safety net for your biggest investment. Make sure that net has no holes.