Your mortgage lender may have required you to obtain homeowners insurance—but it’s up to you to make sure you get the most out of your policy!

The first step is understanding what exactly it covers—and what it doesn’t.

We have to start off by pointing out that every homeowners policy is unique, and it would be wise of you to contact your insurance agent to make sure you understand the particulars of your own policy.

That being said, most homeowners policies have several things in common—and that’s what we’ll focus on here.

What the Typical Homeowners Policy Covers

• Damage that occurs to your house due to covered losses. You will have to review your own policy to ensure you understand what your covered losses are, but it’s important to know that damage due to flood or earthquake are typically not covered by a homeowners policy, while damage due to fire typically is. The policy will help you repair or rebuild your home and attached structures (such as a garage) damaged by these covered losses.
• Damage that occurs to other structures due to covered losses. Your policy may cover damage due to fences, detached garages, or other structures .
• Your personal property, when it is damaged or stolen. If your jewelry, furniture, appliances, or other valuables are damaged or stolen, your policy will help you replace those items up to the dollar limit defined by your policy. Be aware that your valuables may be worth more than your policy covers, in which case you may need to purchase additional insurance coverage to sufficiently protect them.
• Living expenses due to loss of use of your home (if it is sufficiently damaged that it is uninhabitable).
• Your own liability (or the liability of family living in the same house) for damage to other people’s property for which you are responsible. This may include legal costs and liability judgments resulting from a lawsuit. Remember that we live in a litigious society, and the liability coverage included in your homeowners policy may not be sufficient to protect your assets. That’s where an umbrella policy can be a lifesaver.
• Medical payments to others for bodily injuries that occur on your property. This may also help with costs of a lawsuit or legal decision.
• Damage or repairs costing less than your deductible.
• Costs that exceed the coverage limits defined by your policy.
• Routine maintenance and repairs.
• Damage due to losses that are not covered. In addition to flood and earthquake, this may include damage due to sinkholes, sewer backups, termites, and animals.

What the Typical Homeowners Policy Doesn’t Cover

• Damage or repairs costing less than your deductible.
• Costs that exceed the coverage limits defined by your policy.
• Routine maintenance and repairs.
• Damage due to losses that are not covered. In addition to flood and earthquake, this may include damage due to sinkholes, sewer backups, termites, and animals.

For more than 25 years, Beall Financial and Insurance Services, Inc., has been helping corporations and individuals protect their most important assets. The agency’s client base covers a spectrum of businesses that require specialized insurance packages and knowledge. With offices in California and Indiana, Beall Financial and Insurance Services serves clients nationwide.