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What does homeowners insurance cover?

Homeowners insurance is a type of coverage that protects you financially in the event of an accident, disaster, or theft involving your home. A standard homeowners insurance policy will include four types of coverage: structure, personal belongings, additional living expenses, and liability.

Coverage for the structures

Homeowners insurance pays to repair or rebuild your home in the event of the unexpected. If your home is destroyed or damaged by an insured disaster such as fire, lightning, hail, tornado, hurricane, or other disaster listed on your policy, your homeowners insurance would be there to help cover the cost. You should note that standard homeowners insurance policies do not pay for damage caused by flood or earthquake and you will need separate coverage for those disasters. When shopping for a policy, you want to be sure to purchase enough coverage to rebuild your home in the event that it is destroyed.

Coverage for your belongings

Personal items like furniture, clothing, shoes, dishes, sports equipment, and other items would be covered in the event that they were stolen or destroyed during an insured disaster. This type of coverage also includes items stored off-premises and may include some coverage for unauthorized use of your credit cards. To be sure you have enough coverage for your belongings, you should conduct a home inventory before speaking with your Insurance Agent.

Additional living expenses

In the event that you are unable to live in your home due to damage from an insured event, additional living expenses (ALE) would help cover the cost of hotels, food, and other expenses that exceed your normal living expenses while your home is being repaired or rebuilt. ALE does have limits and may include a time limitation- it is a good idea to keep a copy of your policy documents on hand and speak to your Insurance Agent if you have any questions about your coverage.


Liability is an important type of coverage to have because it covers you against lawsuits for property damage or bodily injury caused by you or your family members. This part of your coverage will pay for the cost to defend you in court and any court awards- up to your policy limits. Your policy will also include no-fault medical coverage which means that if a neighbor or guest is injured while visiting your home, they can submit medical bills to your insurance provider without filing a liability claim against you.

Having homeowners insurance is an important part of owning your own home and we’re here to help ease your mind. If you have questions or would like a no-obligation quote for your home, visit your local Acceptance Insurance Agent today.

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