Defending the Homestead: What Home Insurance Truly Covers

By John Schuster

The John Schuster Group has sold over 5,000+ homes and has been the 10-year recipient of #1 Listing Agent with Coldwell Banker Realty statewide.

When becoming a homeowner, it’s crucial to have safeguards in place to protect one of your most valuable assets from unforeseen events. This protection is typically provided through homeowner’s insurance. Here are five key areas that this type of insurance covers:

1. Dwelling coverage. This aspect covers your home’s physical structure, including walls, floors, ceilings, and other interior elements. It’s not based on your home’s market value but rather on the cost of rebuilding it. Since construction costs can exceed market value, this coverage ensures that you can reconstruct your home if necessary.

2. Personal property coverage. Personal property coverage insures your belongings within your home, such as furniture, electronics, tools, and clothing. Typically, this coverage is around 70% to 80% of your home’s value.

3. Liability coverage. Liability coverage offers financial protection in case someone not living in your home is injured on your property. This includes incidents like dog bites or slip-and-fall accidents. It shields you from potential legal claims and associated costs.

4. Other structure coverage. This coverage pertains to structures that are separate from your main dwelling, such as detached garages, fences, and gazebos. It ensures that these additional structures are protected from damage or destruction.

5. HO-6 policy (Condo/townhome personal property insurance). If you own a condominium or townhome, your homeowners’ association might have coverage for the building itself. However, this coverage won’t extend to your personal belongings. An HO-6 policy fills this gap, safeguarding your personal property in these shared living environments.

When considering insurance options, remember to compare not only the cost of coverage but also the maximum liability protection offered by different policies. To make an informed decision, consult a trusted local insurance agent for more detailed information.

If you’re interested in purchasing a new home or evaluating your current property’s value, call or text us at (952) 222-9000, or send us an email. We look forward to hearing from you.