Homeowner insurance is divided into two parts: property protection and liability protection. You should also be aware of typical exclusions.
- Other structures
- Personal property
- Loss of use or additional living expenses
- Additional coverages
- Medical payments
- Personal liability
What's not covered
Don't be surprised: There are several major risks that a standard homeowner policy does not cover. If you face these risks, you should strongly consider buying additional coverage.
This coverage provides for repair or replacement of your home due to an earthquake.
You'll need flood insurance to cover you against floods, flood-related erosion, abnormal tidal surges and mud flow.
Homeowner policies usually don't cover damage due to land movement or landslides.
Some companies will allow you to buy additional coverage for mold.
Not all damage caused by a volcanic eruption is covered under your homeowner policy - you may need more coverage.
Other common things your basic policy doesn't cover
- Wear and tear, deterioration
- Maintenance issues, including slow water leaks
- Damage due to animals or rodents
- Foundation settling and cracking
- Additional things not covered by a standard policy