Home » Insurance » Do You Know What Your Homeowners Insurance Policy Covers?

Do You Know What Your Homeowners Insurance Policy Covers?

As a homeowner, one of your primary responsibilities to your mortgage company, other than making your regularly scheduled mortgage payments, is to keep valid homeowners insurance on your home. In most cases, you will look for the cheapest option available since there is a very low likelihood that you will ever need to file a claim against it. However, in the event a disaster does strike, you need to know what your homeowners insurance covers and what it does not. Here are a few things you will need to know in order to determine whether or not the coverage you have is adequate for your needs.


According to the Insurance Information Institute, there are several types of homeowners insurance. The most commonly written policies are HO-3 insurance policies and the type of policy you have if you own a single family home that you are currently living in. If it is an investment property, you will most likely have an HO-4 policy and HO-6 is a homeowners policy for those who own condos or timeshares. While this doesn’t really have any bearing on what is covered under your policy, it doesn’t hurt to ensure that you have the right type for your particular situation.


First and foremost, your homeowners insurance policy is designed to make repairs or replace your home in the event of a disaster. Basic homeowners policies will cover damage associated with fire, lightening and even hurricane or tornado damage, but most will require an additional policy to cover things like flooding or earthquake damage. It is important that you understand what disasters you are covered for and then determine whether you need additional rider policies to cover disasters that you may experience in your particular area in order to ensure that you are covered appropriately. It is also important to note whether any outbuildings such as garages, storage buildings, barns or other structures are covered under your policy. If not, you may need a rider.


In addition to your home’s structure, your homeowners insurance policy will cover your personal items inside your home against damage. In general, these items are covered up to a specific dollar value, not to exceed the maximum limit listed in the policy. You need to know what this limit is and have it raised or lowered based on what you perceive it will cost to replace the items in your home in the event of a disaster. Additional coverage will need to be purchased for luxury items such as artwork, jewelry, furs and other items.


Liability coverage is included and is designed to pay for any damage that you or someone in your family causes damage to someone else’s property. This is generally a preset limit, which you can review and change if you feel as though it needs to be more or less.

Living Expenses

Last but not least, many homeowner’s policies will cover your expenses for living in a hotel and eating out if you are displaced after a disaster. This will only last as long as it takes for your home to be repaired or rebuilt.

There are many other coverages that can be added to your homeowners policy, based on your particular situation. If you are in need of homeowners insurance La Crescenta CA, call your local insurance agency for home insurance quotes La Crescenta CA.

If you are looking for homeowners insurance La Crescenta CA, look no further than LCSB Agency. Cal today and get free home insurance quotes La Crescenta CA.