Homeowners insurance provides financial protection against losses and damages to a person’s home, its contents, and other assets within the property. It also provides liability coverage for accidents that occur on the property.
Pursuant to your particular policy language, coverage provisions, and exclusions; homeowners policies can include coverage for:
Dwelling Coverage – Protects the structure of your home, including walls, roof, floors, built-in appliances, and attached structures like a garage or deck.
Other Structures Coverage – Covers detached structures on your property, such as a garage, shed, fence, or gazebo.
Typically set at 10% of your dwelling coverage but can be adjusted.
Personal Property Coverage – Protects your belongings inside the home, such as furniture, electronics, clothing, and appliances. Covers theft and damage from covered perils. Coverage may have limits on high-value items like jewelry or artwork—additional riders may be needed for full protection.
Liability Coverage – Provides financial protection if you are sued for bodily injury or property damage caused by you, your family members, or pets.
Covers legal fees, medical bills, and settlements if someone is injured on your property or if you accidentally cause damage to others.
Medical Payments to Others – Pays for medical expenses (e.g., hospital bills, doctor visits) if a guest is injured on your property, regardless of fault.
Additional Living Expenses / Loss of Use – Covers temporary living costs (e.g., hotel stays, meals, rental costs) if your home becomes uninhabitable due to a covered loss.
Lisa owns a home and has an HO-3 homeowners insurance policy with the following coverages:
One evening, Lisa is cooking dinner when she gets distracted by a phone call. A grease fire starts on the stovetop, quickly spreading to the cabinets and nearby appliances. She tries to put it out, but the fire alarm triggers, and she evacuates. The fire department arrives and extinguishes the flames, but the kitchen sustains severe fire, smoke, and water damage from the firefighting efforts.
Lisa notifies her insurance company about the fire. She takes photos and videos of the damage. The insurance adjuster schedules a visit to inspect the property.
How Homeowners Insurance Helps:
The adjuster confirms the fire was accidental and covered under her policy. Damage to the kitchen structure (walls, cabinets, flooring) is covered under dwelling coverage. Destroyed appliances and furniture are covered under personal property coverage (subject to depreciation unless she has replacement cost coverage).
Because Lisa cannot use her kitchen, she is eligible for Additional Living Expenses (ALE) to cover temporary housing and meals while repairs are completed.
The insurance company estimates $50,000 in damages (kitchen reconstruction and appliance replacement). Lisa’s deductible is $1,000, so she receives $49,000 for repairs. ALE covers her hotel stay and dining costs for two weeks while her home is restored.
Contact CastleWise to discuss Homeowners insurance coverage.
