Home Insurance Guide

Understand Homeowners Insurance Coverage

Learn the major parts of a homeowners policy and the questions worth asking before you compare options.

Independent education: We do not sell homeowners insurance directly.

What homeowners insurance commonly covers

A homeowners policy commonly combines several kinds of protection. Exact terms depend on the policy form, endorsements, exclusions, limits and state rules.

DwellingProtection for covered damage to the structure of the home.
Personal PropertyCoverage for eligible belongings, subject to limits and policy terms.
LiabilityProtection for certain covered claims involving injury or property damage to others.

Other important components

Policies may include coverage for other structures, certain additional living expenses after a covered loss, and medical payments to others. Some property categories may have special sublimits.

Replacement cost vs. actual cash value

How a policy values covered property can materially affect a claim payment. Replacement-cost provisions and actual-cash-value provisions work differently, and policy-specific conditions apply.

What may require separate protection?

Standard homeowners policies may not cover every type of loss. Flood, earthquake and other risks may require separate policies or endorsements depending on the property, location and insurer.

How to compare home insurance

  1. Compare equivalent dwelling and liability limits.
  2. Review deductibles, including any separate deductibles that may apply.
  3. Check how personal property is valued.
  4. Review exclusions and endorsements.
  5. Ask about discounts such as eligible home-and-auto bundling where available.

Compare Carefully, Not Just Cheaply

Use the same limits and deductibles when comparing options so the prices are meaningful.

Read Home Coverage Guide

Policy forms and coverage rules vary. Review official policy documents and consult a licensed professional for advice about your property.