What Homeowners Insurance Covers and What It Doesn’t

At Edison Insurance Services, our mission is to provide excellent service to our clients. We understand that navigating the home insurance world can often be confusing, so we’ve put together this blog post to help clear some of the confusion surrounding what home insurance does and does not cover. In this post, we’ll cover the basics of what is and isn’t covered by typical homeowners insurance.

What is Covered by Homeowners Insurance?

Homeowners insurance is designed to cover a variety of potential problems that can happen with a home. The coverage typically provides protection for the following three common scenarios:

1. Dwelling: This coverage helps to pay for repairs or rebuilding of the dwelling itself as a result of a variety of risks, such as fire, hail, vandalism, and theft.

2. Personal Property: This portion of the policy covers the contents of the home, including furniture, electronics, appliances, clothing, and other items. Typically, these items are covered if they are stolen or damaged because of a covered risk.

3. Liability: This section pays for expenses if someone is injured on your property. It will also cover some lawsuits and legal expenses, such as if you are sued for something that takes place in your home.

What Isn’t Covered by Homeowners Insurance?

It’s important to understand that homeowners insurance has limits and exclusions associated with it. Below are some examples of risks typically not covered by typical homeowners policies:

1. Certain Damage: Not all damage is covered by homeowners insurance. Examples of damage not covered by most policies include damage caused by vermin, sewer backup, and power failure. It’s important to review your policy to understand what is and isn’t included.

2. Acts of Nature: Some homeowners believe that acts of nature, such as a hurricane, are covered by their policy. However, this isn’t always the case. Depending on where you live, homeowners policies might not cover damage caused by certain natural disasters, such as an earthquake or flood.

3. Personal Liability: Personal liability coverage is sometimes excluded from homeowners insurance policies. This can include a lawsuit or claim arising from something you do or fail to do. It’s important to review your policy to understand whether you have this coverage or not.

Understanding the Excess and Deductible

When it comes to homeowners insurance, understanding the excess and deductible is essential. An excess is an additional payment you will have to make when making a claim, regardless of its value. The amount of the excess varies between policies and insurers.

The deductible is the amount of money you need to pay towards a claim before any coverage kicks in. The higher the deductible, the lower your premiums are likely to be. Many people opt for higher deductibles to keep their premiums low, but it’s important to understand that you will need to pay the deductible out of pocket when making a claim.

Common Homeowners Insurance Misconceptions

There are a few common misconceptions about what’s covered by homeowners insurance. These include:

1. Financial Costs: Homeowners insurance does not pay for the cost of repairs or replacements, or cover the market value of your home. It only pays out based on the cost of rebuilding or replacing the insured items.

2. DIY Repairs: Any repairs or replacements you do yourself are not covered by homeowners insurance. The insurer will only cover repairs and replacements done by an approved contractor.

3. Pre-existing Conditions: Homeowners insurance does not cover pre-existing conditions, such as a roof that was already damaged before the policy was taken out.

Contact Edison Insurance Services for More Information

We hope this blog post has helped you understand what homeowners insurance does and doesn’t cover. If you’d like to learn more about your own specific coverage or would like to speak to an agent, contact Edison Insurance Services for more information. Our team is happy to answer any questions you may have about your homeowners insurance coverage.