Your Guide to the Different Types of Homeowners Insurance Coverages

Whether you’re buying a homeowners insurance policy for the first time or updating your current policy, knowing the different types of home insurance available to you will help you make an informed decision.

A standard homeowners insurance policy will include: 

Dwelling coverage: This ensures protection for the structure of your home as well as built-in appliances and any attached structures. It will help you rebuild your home in the event of a total loss or damage from fire, vandalism, and theft.

Contents coverage: This protects your possessions from covered risks. If an untoward incident were to occur, it will help pay to replace/repair the stolen/ damaged personal belongings.

Personal liability: This will cover costs of bodily injury and property damage sustained by visitors for which you or covered residents of your household are legally responsible.

To make the most of your homeowner’s insurance policy, you’ll have to customize it to suit your specific needs. Here are some optional coverages you can choose from:

- Flood insurance: A separate policy with its own deductible that protects your house and personal belongings from flood-related damages. A good add-on (and sometimes mandatory) if you live in an area that is prone to flooding.

- Earthquake insurance: A policy with its own deductible that covers your home if it sustains damages during an earthquake.

- Replacement cost plus coverage: An extra level of protection that provides additional coverage to rebuild your home in the event of a total loss.

- Water backup coverage: Protects your home in the event of a sewer or drain backup.

- Other structures insurance: Covers property including gazebos, sheds, or garages that are unattached to your home.

- Ordinance or law insurance: A smart choice if you have an older home, this coverage will help you rebuild your house to fit current building codes after a (covered) loss.

- Better Roof Replacement®:  Coverage that can help you rebuild a stronger and safer roof after a (covered) loss.

- Valuables Plus®: A unique nationwide coverage that protects high-value items such as jewelry, antiques, and fine art in the event of a (covered) incident.