How Homeowners Insurance Works

Your home may be your most valuable possession. If a covered disaster or other damaging event were to affect your home, homeowners insurance could help you repair or rebuild your home as well as protect your belongings.

What Protection Does Homeowner Coverage Provide?
Homeowners coverage can give you peace of mind and help you repair or rebuild after a fire, smoke, theft, vandalism or a falling tree damages your home. It can also provide coverage if weather, such as lightning, wind or hail, damages it. Homeowners insurance is considered a package policy and includes home protection and liability coverage for any injuries and property damage caused by you or your family members—and sometimes even your pets. In addition, your homeowners coverage may cover medical expenses and legal fees if people other than you, your family or anyone else not living in your home is injured on your property.
outside of a home and a car parked in the driveway

outside of a home and a car parked in the driveway

Many standard homeowner policies also cover outbuildings on your property, such as a garage, barn or shed, along with outdoor grills or fireplaces, swing sets, walls and fences. Swimming pools or other recreational equipment may also be included, but higher-risk items could require additional coverage.

Furthermore, many home insurance policies may provide additional living expenses (ALE) coverage if your home is uninhabitable and you must live elsewhere because of damage from an insured loss.

The Ed Weeren Insurance Agency can help you explore your coverage options to ensure your home and your belongings are adequately protected.

What Isn’t Covered By Homeowners Insurance?
Although homeowners insurance usually covers many types of damage or loss, homeowner policies don’t typically cover damage caused by natural disasters, such as flooding or earthquakes. If you live in an area where you may benefit from this type of coverage, you might want to purchase additional flood insurance and earthquake insurance policies.

Similarly, many standard home insurance policies won’t cover maintenance issues, such as termite and insect damage, rodents or mold.

How Much Is Homeowners Insurance?
Homeowners insurance is vital for protecting your home and belongings. The cost of your policy will depend on a variety of factors, including:

Where you live
Your home’s value and rebuild cost
The amount of coverage you want

Your home’s age and condition
Your home’s security and safety features
Your credit history
Additional coverage you choose
Your deductible

It’s a good idea to periodically review your homeowners policy to ensure any modifications you’ve made are covered.

Is Homeowners Insurance Required?
States do not typically require homeowners insurance, but if you have a mortgage, your lender may require you to have it. Homeowners insurance protects your lender if you cannot pay off your loan if your home is destroyed.

Even if you do not have a mortgage, homeowners insurance is still be good coverage to have. If your home were to be suddenly damaged or destroyed by a covered peril, homeowners insurance could help you pay to repair or rebuild without shouldering these costs out of pocket.

The Ed Weeren Insurance Agency helps protect Austin properties, possessions and families. With homeowners insurance, you can rest assured that you have the protection you need regardless of the challenges that may arise.

How Homeowners Insurance Works

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