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Home insurance: What is home insurance? What does home insurance cover?


Home insurance covers your home, other structures, personal property, loss of use, personal liability, and medical expenses. But, what does this mean? In order to understand your home insurance policy, it is essential that you know the following terms and coverages:


1. What is " Home Value "  or " Coverage A " in home insurance? 

Home value is an estimate of what it would cost to rebuild or replace your home in case of a total loss. Home value is not an estimate of what your home could sell for in the current market. 

2. What are " Other Structures " or " Coverage B " in home insurance? 

Other structures are coverages for structures on your property that are not attached to your house, such as a guest house, a non-attached garage, a shed or a fence. 


3. What is " Personal Property " or " Coverage C " in home insurance? 

Personal property covers your contents inside the house. Including but not limited to furniture, appliances, and clothing and other items.


4. What are " Living Expenses " or  " Coverage D " in home insurance? 

Living expenses are coverages for staying in a location other than your home in case your home is damaged.  


5. What is  " Personal Liability " or " Coverage E " in home insurance? 

Personal liability covers you against claims of property damage or bodily injury. 


6. What are " Medical Expenses " or  " Coverage F " in home insurance? 

Medical expenses cover medical attention and payments for injury or damages to others while on your property.


7. What are " Additional Coverages " in home insurance? 

Additional coverages are options that you can select in a policy to protect yourself against different types of risks or events. Such as equipment breakdown, water back-up/sump discharge, foundation coverage, sinkhole collapse, personal injury, identity fraud expense, enhanced personal property (jewelry, watches, furs and other valuables), and increment of replacement cost. Please note that additional coverages vary and may differ from one insurance company to another.


8. What are " Deductibles " in home insurance? 

Deductibles are specific amounts of money or percentages that the insured must pay before an insurance company pays for a claim. Home insurance policies have two or three deductibles for windstorm and hail, name storms and for any other loss. Please note that additional coverages vary and may differ from one insurance company to another. Increasing the deductibles in your home insurance policy will reduce your premium but it will also increase the amount of the covered loss that you will be responsible for paying in case of a home insurance claim.


9. What are " Construction risks and characteristics " in home insurance? 

Construction risks and characteristics are details about your home that insurance companies consider before issuing a home insurance policy or for calculating your annual premium. Construction type, upgrades, repairs, roof age, loss history, square footage of your property’s living area, and the number of stories are some of the characteristics that insurance companies review. Presence of a fire alarm, burglar alarm, or an in-home sprinkler system are characteristics that may qualify you for discounts in the annual premium of your home insurance policy.


10. Does home insurance include flood insurance? 

No, flood insurance is not included in your home insurance. Flood insurance policies are sold separately and can be purchased from an independent insurance agency.


Weather events, damages, and other situations can be financially and emotionally devastating. Our team encourages you to evaluate your risks and consider acquiring additional coverages for your home insurance. We also encourage you to consider buying a flood insurance policy that protects your home. Protect your home with the right home insurance and flood insurance policies; we can help you find them. 


Searching for a home insurance policy or flood insurance policy? Get a home insurance or a flood insurance quote today or call us at (713) 772-2727. Our team will be happy to assist you and answer any questions you may have about home insurance or flood insurance.