Homeowners insurance covers your home's structure, your personal belongings, your liability if someone is injured on your property, and additional living expenses if your home becomes uninhabitable after a covered loss. It is a package policy that bundles several types of protection into one.
This is the core of your homeowners policy. Dwelling coverage pays to repair or rebuild your home's structure — walls, roof, floors, built-in appliances, and attached structures like a garage — if damaged by a covered peril. Covered perils typically include fire, lightning, windstorms, hail, explosions, theft, and vandalism. Your dwelling coverage limit should reflect the full cost to rebuild your home at current construction prices, which is often different from its market value.
This covers structures on your property that are not attached to your home — detached garages, sheds, fences, and pools. It is typically set at 10% of your dwelling coverage. If your dwelling coverage is $300,000, you would have $30,000 for other structures.
This pays to replace your belongings — furniture, electronics, clothing, kitchenware, and more — if they are damaged or destroyed by a covered event. Personal property is usually covered at 50% to 70% of your dwelling coverage. Be aware of sub-limits for high-value items like jewelry, art, and collectibles, which may need to be scheduled separately.
If someone is injured on your property or you accidentally damage someone else's property, your homeowners liability coverage pays for medical expenses, legal fees, and court judgments. Standard policies typically include $100,000 in liability, but higher limits are available and often recommended.
If a covered event makes your home uninhabitable, ALE — also called loss of use — pays for temporary housing, meals, and other expenses above your normal costs while your home is being repaired. This coverage ensures you have somewhere to live during what is already a stressful time.
A homeowners policy is only as good as its coverage limits and the perils it covers. At Truscott, we review each coverage component to ensure your home, belongings, and finances are properly protected. Request a Truscott policy checkup and we will walk through your entire homeowners policy so you understand every protection you are paying for.
Learn what actual cash value (ACV) means on a homeowners insurance policy, how it differs from replacement cost, and why the distinction matters when you file a claim.
Homeowners InsuranceLearn how replacement cost works on a homeowners policy for both your dwelling and personal property, and why it is the better choice over actual cash value.