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Important Things To Know About Homeowner's Insurance

Why Is It Important To Have Homeowner's Coverage?

Homeowner's Insurance offers protection for damage or loss caused by storms, fire and theft. It can also provide protection for your valuable possessions. It is imperative to prepare for the unexpected when there is a chance that lack of protection can lead to financial hardship. In short, where there is a financial interest, there should be a specific policy in play to minimize the potential of suffering from great financial loss.

What A Basic Homeowner's Insurance Policy Should Look Like

Though all insurance policies are fully customizable, depending on your budget, there are certain elements that exists in a basic homeowner's policy. Your agent will usually work with you on determining how much coverage you'll need, as you would want to make sure that you also have sufficient coverage to ensure the repair or replacement of your home if you should experience a covered loss.

Dwelling Coverage

Other Structures Coverage

Personal Property Coverage

Liability Coverage

What Basic Homeowner's Insurance Policies Do Not


Specific types of damage or loss that your homeowner's insurance won't cover may be listed on your policy as exclusions.

In this case, the insurance will deny your claim if you experience these losses. Most policies come with a variety of exclusions.


Damage caused by floods is almost always a common HO-3 policy exclusion, but even homeowners with an HO-5 policies, which provide broader coverage than HO-3 policies, are likely not covered for flood damage. Typically, you will need to purchase a separate flood insurance policy.


Earthquakes can cause much harm to home structures than most other events. They can damage housing foundations and collapse walls. This may be excluded from your homeowner's policy but can be covered by purchasing a flood policy.

Other Exclusions

Ground movement, mold, wear & tear, infestations, nuclear hazards, government action, dangerous and/or aggressive dogs, wind damage in hurricane prone states, intentional loss and/or neglect and other common exclusions can normally be purchased as separate policies or add-ons.

What To Look For When Purchasing A Homeowner's Insurance Policy