What Does Homeowners Insurance Cover?

Homeowners insurance policies differ in their terms and conditions, and in the cover they offer. However, in general, they provide can cover against damage or loss to your property caused by the following:

• Fire
• Theft
• Lightning
• Explosion
• Falling objects: trees, aerials, parts of aircraft
• Burst pipes, tanks, damaged boilers
• Collision by vehicles or animals (for example, if someone drives into your home)
• Subsidence, heave and landslip
• Civil riot or malicious persons

If your house is rendered uninhabitable or completely destroyed, you should be able to claim the cost to carry out the necessary repairs or to rebuild. The policy will help to meet any reasonable cost of alternative accommodation whilst the rebuilding work is undertaken.

Smaller claims can be made for damage caused by less devastating events such as floods, smoke or broken windows.

A policy can provide cover for the structure of your house, but can also offer cover for permanent fixtures and fittings such as interior decorations, toilets and baths, fitted kitchens and bedroom cupboards. The policy may include any legal costs arising from damage to your home.

Policies may also include outbuildings such as sheds, garages and greenhouses. However, fences, walls, gates, paths, drives and swimming pools may not be covered – so you need to check the policy if you need protection for these additional areas.

Household Items

Cover for household items usually includes your personal possessions and anything you would take with you if you were to move house, such as furnishings, furniture, computer and audio equipment, televisions, clothing, frozen food and garden equipment.

Although you can cover most of your items under a general policy, you may need to purchase a rider to cover expensive items such as works of art, jewellery or antiques. You could also consider consulting a specialist insurer for these items. This advice also applies to items such as musical instruments; a specialist insurer may provide more appropriate cover for these items, and you may find that this may also be at a cheaper price.

Liability Insurance

Many homeowners insurance policies also provide liability insurance, which will protect you in the event that anyone injures themselves in your home and makes a claim against you. These claims can be for a considerable amount.

Exclusions

Homeowners insurance rarely covers the cost of repairing your property against problems caused by normal wear and tear. So, although you can claim to have your roof repaired if it was leaking because a tree or other object had fallen onto it, you would not be able to make a claim to have it repaired simply because it is old.

Your policy may exclude other certain events, such as damage caused by terrorism, flood or 'Acts of God'. These exclusions will vary between insurance companies and from policy to policy. Consequently, it is vital to check your policy details, so that you know those risks you do not have insurance against. If there is anything you do not understand, always ask your agent for an explanation.