Buying a home is a major milestone — and protecting it with the right insurance is just as important. Yet many homeowners don't fully understand what their policy includes, or worse, assume they’re covered for things that are actually excluded. Here’s a simple breakdown of what you need to know.
1. The Core Coverage Types
Most home insurance policies consist of several key components:
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Dwelling Coverage: Pays to repair or rebuild your home if it’s damaged by covered events like fire, wind, or hail.
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Personal Property: Covers the items inside your home — furniture, clothing, electronics — if they’re stolen or damaged.
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Liability Protection: Provides financial protection if someone is injured on your property and sues you.
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Loss of Use: Covers additional living expenses if you need to stay elsewhere while your home is being repaired.
Knowing what each part does helps you avoid unpleasant surprises when making a claim.
2. What’s Not Covered
Standard policies don’t cover everything. You may need separate insurance for:
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Floods or earthquakes
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Sewer backups
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Mold or pest damage
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Neglect or normal wear and tear
Make sure to ask your provider what’s excluded and consider extra coverage if you're in a high-risk area.
3. Understanding Deductibles and Limits
A deductible is what you pay out of pocket before insurance helps. A higher deductible usually means lower premiums but more expense during a claim.
Coverage limits are the maximum your insurer will pay. Be sure your limits reflect the actual value of your home and belongings — not just what you paid for them.
4. Keeping Your Policy Up to Date
Life changes — and so should your insurance. Renovations, new furniture, or valuable purchases may require policy adjustments. Review your coverage annually to make sure it still fits your needs.
Final Thought
Home insurance doesn’t just protect bricks and beams — it protects your peace of mind. By understanding what your policy includes (and what it doesn’t), you’re taking a smart step toward financial security. The best time to learn the basics is before you need to use them.
