Peace of mind
Homeowners Insurance Explained
Understand what your policy covers, what it doesn't, and how to get the right protection at a fair price.
What a standard policy covers
Most HO-3 policies include:
- Dwelling — the structure of your home
- Other structures — fences, sheds, detached garages
- Personal property — your belongings
- Liability — injuries to others on your property
- Loss of use — living costs if you can't stay home
What's usually excluded
Floods, earthquakes, sewer backups and gradual wear are typically not covered. Ask about separate flood insurance or endorsements for your area.
Replacement cost vs. actual cash value
Replacement cost pays to rebuild or replace at today's prices. Actual cash value subtracts depreciation — cheaper premiums, smaller payouts.
Ways to save
Lower your premium without losing protection:
- Bundle home and auto policies
- Raise your deductible if you have savings
- Install monitored alarms and water-leak sensors
- Re-shop your policy every year or two