Personal & Household Line

Homeowners insurance

InsuranceFinder coverage guide · Updated September 2026

Homeowners insurance covers your dwelling, unattached structures, and personal possessions against perils such as fire, lightning, windstorm, and theft, alongside personal liability if someone is injured on your property. Standard homeowners policies explicitly exclude overland flood and earthquake damage, which require separate policies or endorsements.

Homeowners coverage breakdown: dwelling, property & flood

A standard homeowners policy (typically HO-3) bundles physical property protection with personal liability. Knowing the exact limits and mandatory exclusions protects you from unexpected out-of-pocket losses.

1. Dwelling & Other Structures (Coverage A & B)

Pays to repair or rebuild the physical structure of your house, roof, and attached garage, plus detached structures (sheds, fences) at 10% of dwelling limit.

2. Personal Property (Coverage C)

Reimburses damage or theft of personal belongings (furniture, clothing, electronics) anywhere in the world, usually set at 50% to 70% of dwelling coverage.

3. Loss of Use / Additional Living (Coverage D)

Covers temporary hotel stays, restaurant bills, and storage costs while your home is undergoing repairs after a covered peril.

4. Personal Liability & Medical (Coverage E & F)

Defends and pays claims if someone slips and is injured on your property or your dog bites someone, plus immediate no-fault medical payments.

Critical Homeowners Exclusions to Note:

Standard policies do NOT cover flood damage (rising water from storms or rivers requires a separate NFIP or private flood policy), earthquake or ground movement, routine maintenance/wear, or sewer and drain backups (requires a water backup endorsement).

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Who typically uses homeowners insurance

Homeowners insurance is typically carried by people who own and live in a house or similar dwelling. When a mortgage or home equity loan is involved, the lender usually requires an active homeowners policy until the loan is paid off. Flood and earthquake damage are usually excluded from a standard policy and need separate coverage or endorsements. People who rent usually need a renters policy instead; condominium unit owners usually need an HO-6 (condo) policy for what is inside the unit.