What Is Homeowners Insurance?

Homeowners insurance is a policy that helps protect your home, your belongings, and your financial well-being if something unexpected happens. It provides coverage for common risks like fire, storms, theft, and certain types of liability claims.

In simple terms: it’s there to help you repair, replace, or recover when life doesn’t go as planned.

Why Homeowners Insurance Is Important

Your home is likely one of your biggest investments. Homeowners insurance helps protect that investment by covering costly repairs or replacements after a covered loss.

If you have a mortgage, your lender will require homeowners insurance to protect their financial interest in the property. Even if your home is paid off, carrying coverage is still strongly recommended to protect you from large, out-of-pocket expenses and potential lawsuits.

What Does Homeowners Insurance Cover?

A standard homeowners policy is made up of several key coverages. Each one plays a different role in protecting you.

Dwelling Coverage

This covers the structure of your home itself, including the walls, roof, floors, and built-in features.
Example: A fire damages your kitchen and living room—dwelling coverage helps pay for repairs.

Other Structures Coverage

This covers structures on your property that are not attached to your home.
Example: A detached garage, shed, or fence damaged by a storm.

Personal Property Coverage

This covers your personal belongings inside (and sometimes outside) the home.
Example: Furniture, clothing, electronics, and appliances stolen during a break-in.

Loss of Use (Additional Living Expenses)

If your home becomes unlivable due to a covered loss, this helps pay for temporary living expenses.
Example: Hotel stays, meals, or short-term rentals while repairs are being completed.

Personal Liability Coverage

This protects you if you’re found legally responsible for injury to others or damage to their property.
Example: A guest slips and falls in your home and sues for medical expenses.

Medical Payments Coverage

This helps cover minor medical expenses for guests injured on your property, regardless of fault.
Example: A visitor is hurt by accident and needs immediate medical care.

Choosing the Right Coverage

Every home and homeowner is different. Coverage limits, deductibles, and optional add-ons should be tailored to your property, lifestyle, and budget. Working with an experienced agent helps ensure you’re properly protected—not underinsured and not paying for coverage you don’t need.