Home Insurance, also called homeowners insurance, covers losses and damages to your private residence and its contents, such as furniture, valuables, clothes, and electronics. The amount of coverage it provides varies depending on the type of policy you buy, its liability limits, your deductible, property value, etc. Most policies do not cover motorized vehicles or losses from natural disasters, like floods or earthquakes. You can usually buy coverage for these things in a separate policy. Generally, a home insurance policy covers:
- Property damage to your home and other detached buildings
- Contents and personal belongings
- Additional costs to live somewhere else if your home is uninhabitable
- Personal liability to protect you from a claim or lawsuit if someone has an accident on your property that causes personal injury or damage to their property
Coverage for Natural Disasters
It’s not always easy to understand what disasters a home insurance policy covers. Some policies may cover certain kinds of damage, but not others. Your coverage can also vary depending where you live, how your home is built, the options you choose, and more.
To help answer your questions about coverage for natural disasters, the Federal Alliance for Safe Homes, Inc. (FLASH®) and The Actuarial Foundation have put together “A Homeowner’s Guide to Natural Disasters.” This online guide addresses floods, hurricanes, tornadoes, earthquakes, lightning, and other threats to your home. It also provides information about insurance products and forms, which vary for different types of disasters. Additionally, it shares steps you can take to help prevent losses from natural disasters.
