What does homeowners insurance cover?

It depends on the kind of policy you get. The essence is that you are protected from loss regarding your home, as well as its contents.

Here's a brief lowdown of the different types of coverages for homeowners insurance. Please note that these fall under two types of protection - property protection and liability:

Part I: Property Protection

• Coverage A: The House itself. This includes the structures, as well as any fixtures, including plumbing, air conditioning, heating, wiring and built-in closets and appliances.
• Coverage B: Other structures related but detached to the house. This includes the garage, shed, patio, walls, sidewalks and driveways. This is only limited to structures used for personal purposes only. The insurance will not cover structures used for business purposes (i.e. you have a greenhouse where you grow flowers you sell).
• Coverage C: The contents of the house - These are for possessions owned by the residents of your house. This protection will cover for losses to property, up to certain limits. Depending on your policy and additional floaters, this coverage is invariably limited to certain property and may not cover expensive jewelry or musical instruments.
• Coverage D: Loss of Use or Additional living expenses. This will pay for living expenses you incur as a result of damage to your home. For instance, the insurance may pay for your hotel while your house's roof is being fixed after a hurricane blew the roof away.

Part II: Protection against Liability

• Coverage E: Personality Liability. This protects from lawsuits or claims arising to loss or injury caused by your house or property or an event that happened in your house. For instance, a visitor slips in the bathroom and breaks his back and subsequently files a lawsuit against you.
• Coverage F: Medical reimbursement or payment. This coverage pays the medical expenses of persons who have been injured due to a covered cause. The injury must occur in your home or may be caused by a covered part of your home. For instance, the wind blew hard so that part of your roof flew away and caused injury to a person.

Please note that there are some losses that are not covered by the policy. These may include:

• War or acts of war or terrorism
• Floods, earthquakes and other natural disasters
• Mold damage
• Damage or liability caused by a pet
• Damage or liability due to neglect
• Damage that is intentional

To ensure the level of coverage you have, its best to ask your agent or to read your homeowners insurance yourself.

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