Generally speaking, homeowners insurance provides three things:

• coverage for damage to your home
• coverage for damage to your personal property
• liability protection

The most common homeowners insurance policy in the United States is known as the homeowners-3 policy or HO-3 (nearly 85% of homeowners have this policy). If you have this policy, you will be covered for everything except the exclusions outlined in the policy (more on that later).

What is covered?
The most common perils for which you will be covered under an HO-3 policy include:

• fire and smoke
• lightning
• tornadoes and windstorms
• hail
• explosions
• vandalism
• theft
• damage from vehicles
• falling objects
• loss of food in your refrigerator or freezer due to power outage outside your home (refer to policy for limits)
• weight of ice, snow, and sleet (except to fence, pavement, patio, swimming pool, or dock)
• accidental discharge of water from plumbing system (i.e. pipe bursts) or freezing of plumbing
• accidental cracking of your hot water heating system
• accidents resulting from your negligence on or off your property (includes damages award to third party, medical bills of third party, and your legal costs--up to policy limit)
• your personal property anywhere in the world (with some exceptions)

Remember, this list is not exhaustive. If it's not in the list of your policy's exclusions, it's covered.

What is not covered?
Specifically, the HO-3 policy does not cover:

• floods (flood insurance must be purchased separately from the federal government)
• earthquakes (can be added to policy)
• war
• nuclear accidents
• structures used for a business (separate insurance is necessary)
• wear and tear on the home, including deterioration, insect and rodent infestation, settling or cracking of foundation or pavement, and damage from domestic animals
• intentional damage
• freezing of pipes in an unoccupied or under-construction house
• theft from a house under construction
• vandalism to a house that has been vacant for more than 30 days
• cars, trucks, vans, motorcycles, aircraft, and boats with anything more than a small motor
• property belonging to tenants
• pets, birds, and fish
• losses resulting from the failure to protect property after a loss

Specific situations
Listed out, these disasters and other situations can be hard to distinguish. Instead, real-life examples are often much easier to understand. (These examples relate to HO-3 policies.)

Your house...

• Lighting strikes a power line leading into your house and starts a fire--you're covered
• A delivery truck careens off the road and smashes into your house--you're covered
• A plane explodes in mid-air and part of the debris hits your house--you're covered
• A pipe bursts in your cellar and covers your downstairs playroom with water--you're covered
• Mice infest your home and chew up your insulation--you're not covered
• The river behind your house floods and you have water damage--you're not covered (flood exception)
• Your home is damaged for some reason and you need to upgrade it to meet the local building codes when you repair it--coverage depends on the individual policy although additional "ordinance or law" coverage endorsements are available
• The value of your home in the real estate market plummets because a prison is built on your block--you're not covered (selling cost has no direct relation to insurance, it is intended to cover the costs of rebuilding or repairing)
• A foreign army invades the United States and destroys your home in the process--you're not covered (war exclusion)
• You go on a cruise for 8 weeks and return home to discover vandals have smashed all your windows--you're not covered (vandalism exclusion for house vacant more than 30 days)

Your personal property...

• A wild animal gets into your house and rips apart your upholstery--you're covered, unless the animal is a rodent or your own pet, which is not covered (If the rodent or pet does something to cause a fire, you are covered for the damage caused by the fire.)
• A thief breaks into your home while you are at work, and steals your entire music collection, the family silver, and everything else portable--you're covered, up to the limits stated within your policy and any endorsements
• Your golf clubs are stolen form the trunk of your car--you're covered (without having a replacement cost endorsement however you will recover only their current value)
• A fire damages your computer equipment in your business which is located in the bonus room over the garage--you're not covered (you need special coverage for your home-based business)

Your negligence...

• You accidentally run your shopping cart over someone's foot at the grocery store and are sued for damages--you're covered
• You accidentally leave your boots on the front steps and your invited neighbor trips over them, breaking her hip--you're covered
• Your slicing drive hits a member of the foursome ahead of you on the golf course--you're covered
• Your lawnmower spits a rock which breaks your neighbor's window--you're covered

Learn More...

Overview | Understanding The Basics | Types Of Insurance | Coverage Amounts
Choosing A Policy | Filing A Claim | Other Types Of Insurance | Home Safety Tips
Planning Concerns | Home Glossary

Please Note: The information contained in this Web site is provided solely as a source of general  information and resource.  It is a not a statement of contract and coverage may not apply in all areas or circumstances.  For a complete description of coverages, always read the insurance policy, including all endorsements.