What Does Homeowners Insurance Cover?

Home insurance coverage can vary based on policy limits, carrier packages, and coverage forms. For example, HO3 coverage forms will not be as broad as an HO5 coverage form. Not all homeowner insurance policies are equal and can coverage can differ with more or less coverage depending on the policy type chosen.

Both new and existing homeowners are on the lookout for the best insurance quotes. New homeowners always want to make sure they’re getting the best coverage and protection, while existing homeowners may face situational changes, may want a better deal, or may find out they need to move and will require a different kind of quote.

Below, we outline the coverage amounts we recommend and also go into how your personal property coverage is determined. There are state limits that vary by carrier, and your agent will know the breakdowns and the amount of coverage you need based on your state or in any specific situation.

Your homeowner’s insurance covers more than just damage to the dwelling – it’s set up to provide you with coverage for inconveniences like loss of use of your home, medical payments to others, and more.

Coverage Forms

Every home insurance policy requires coverage to be provided for both personal property and personal liability. If the insured owns the dwelling then the structure and the contents would be covered under a package policy.

There are several different coverage forms which will determine what causes of loss are covered in the policy:

  • Basic Form
  • Broad Form
  • Special Forms

Each coverage form offers to protect from different covered perils which you can find here.

Homeowners insurance coverage explained:

Most homeowners policies are structured in the following way:

Coverage A – Dwelling amount

This section of your coverage deals with the dwelling itself – not necessarily the entirety of your property, but the actual home structure you dwell in. You’ll find this coverage limit varies from policy to policy based on the value of your home, materials of build, and age of your home. Most carriers will make you carry 100% reconstruction cost on the coverage A when you purchase the policy.

Coverage B – Separate Structures

This coverage includes anything from mailboxes to attached garages to independent sheds, fences – if it’s a structure on your property that ISN’T part of the primary dwelling, this particular structure will all under “separate structures” coverage.

Coverage C – Personal property

Much like renters insurance personal property coverage protects your personal belongings. Whether you need to replace dishes, clothing, furniture, electronics, family heirlooms, or keepsakes, personal property protection covers you.

To determine the right amount of personal property coverage, you’ll discuss itemized expenses with your agent and come up with a coverage amount that works to protect your belongings.

Another thing you’re going to want to make sure you know is the difference between replacement cost and actual cash value. You can learn more in this article to find out about the differences.

What is loss of use?

Coverage D – Loss of Use

If you’re unable to use your home to cook, shower, rest or do anything a regular dwelling requires, this can be a major inconvenience to you and your family. Loss of use coverage ensures that if you’re unable to use your home for a period of time, things like meals, extra transportation costs, hotel rental, etc. are all covered.

Personal and medical liability coverage

Coverage E – Personal liability

This type of coverage is important if you’re found liable for any kind of damages while living in your dwelling, or if a suit is brought against you due to a covered occurrence.

Coverage F – Medical Payments

If you’re found at fault for an injury to others on your property, medical payments coverage ensures you’re protected.


In most circumstances, you will have to pay a deductible before your insurance benefits start and help cover a loss. Deductibles are chosen when you buy your policy and typically start at $1,000 minimum with most carriers.

Some companies are even going to 1% wind hail deductibles, which could mean more out of pocket costs in those types of loss situations. 1% wind/hail deductibles could become the norm over the next decade.


Now that you have a good understanding of what homeowners insurance covers it’s time to start shopping for s policy. We have built some of the best consumer-facing home insurance cost quotes tools available on the web. It’s easy to get quotes from multiple home insurance companies at once. Just click the get quotes button in the sidebar of this page to get started.