Homeowners Insurance

Help protect the home you’ve made your own and the belongings you’ve gathered along the way.

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In short: Generally, aim the dwelling limit at estimated rebuild cost, and know which causes of loss your form excludes.
Who or what is protected: The dwelling and other structures, your personal property, your liability, and additional living expenses.
Where it stops: Flood, earth movement, wear and tear, neglect, and gradual damage are commonly excluded.

Four parts, four limits

Standard homeowners forms organize coverage into lettered parts. Each has its own limit.

Property

Dwelling: The house and attached structures. Set this limit to rebuild cost.
Other structures: Detached garages, fences, and sheds, usually a percentage of the dwelling limit.
Personal property: Furniture, clothing, and electronics. Some categories, such as jewelry, have lower sub-limits.

People and time

Liability and medical payments: Injuries to others and damage you cause, at home or elsewhere, with legal defense.
Loss of use (additional living expenses): Reasonable extra costs of living elsewhere while a covered loss is repaired.

Common policy forms

Form names describe the structure of a policy. Carriers modify them, so read the actual wording.

	Typical structure	Who it fits
HO-3 Special form	Open perils on the dwelling, named perils on belongings	Most owner-occupied houses
HO-5 Comprehensive	Open perils on dwelling and belongings	Owners wanting broader contents coverage, where offered
HO-2 Broad / HO-1 Basic	Named perils only; HO-1 is rarely sold	Limited situations
HO-8 Modified	Often actual cash value or functional replacement	Older homes where rebuild cost far exceeds market value
HO-6 Condo	Your unit interior, improvements, belongings, and liability	Condo owners, alongside the association’s master policy
HO-4 Renters	Belongings, liability, and loss of use; no building	Tenants (see the renters guide)

Scroll sideways to compare all columns.

For a mobile or manufactured home, ask about a form designed for that home type—not automatic coverage under a standard homeowners policy.

How a loss is valued

The valuation clause decides the check, not the sticker price.

Open peril vs named peril: Open peril covers any cause not excluded; named peril covers only the causes listed. With open peril, the insurer generally must show an exclusion applies.
Actual cash value: Replacement cost minus depreciation.
Replacement cost: The cost to replace with new property of like kind and quality, without deducting depreciation; often paid in stages after you replace.
Extended or guaranteed replacement cost: Extra room above the dwelling limit (often expressed as a percentage) if rebuild costs run higher than expected. Availability and percentage vary.
Agreed value: An amount set in advance, common for collectibles and scheduled items.

Common gaps to discuss

Commonly covered, subject to terms

Sudden, accidental water discharge such as a burst pipe
Fire, smoke, wind, and hail (subject to deductibles, which may be separate for wind or hail)
Theft of belongings, with sub-limits on valuables

Commonly excluded or limited

Flood from surface water or rising water: needs a separate flood policy
Earthquake and earth movement: separate coverage or endorsement
Sewer or drain backup: often an endorsement
Gradual leaks, wear, neglect, pests, and intentional acts

Before you talk to an agent: Homeowners Insurance

Tick items as you gather them. Nothing here is saved or sent.

Square footage, year built, and construction type
Roof age and material, plus updates to plumbing, wiring, and heating
Current declarations page and mortgage company details
Claims in the last several years
High-value items you may want to schedule
Protective devices: monitored alarms, sprinklers, water shutoff

What an agent can do

This information is educational, not an offer of coverage.

Start by asking which options are available for your situation. An agent can explain policy wording and help you weigh limits and deductibles. Coverage, price, and eligibility depend on the insurer, your details, and your state.

Questions people ask

How much homeowners insurance do I need?

Enough dwelling coverage to rebuild at today’s construction costs, enough personal property coverage to replace your belongings, and liability limits that reflect what you could lose in a lawsuit. Market value and purchase price are poor guides to rebuild cost.

Does homeowners insurance cover water damage?

It depends on the cause. Sudden, accidental discharge, such as a burst pipe or failed appliance hose, is commonly covered. Gradual leaks are usually not, sewer backup often needs an endorsement, and flood needs a separate flood policy.

Can alarm systems lower my premium?

Many carriers offer credits for protective devices such as monitored burglar and fire alarms, smoke and carbon monoxide detectors, sprinklers or water-leak shutoff systems. Whether a credit applies, and how much, depends on the carrier and the system; monitored systems often earn more.

What is not covered by homeowners insurance?

Standard policies commonly exclude flood, earthquake, normal wear and tear, neglect, and intentional damage. Exclusions vary by form, so check the policy.