How Do I Know What My Homeowners Insurance Covers?

What is homeowner's insurance? It is a kind of real estate insurance, abbreviated as HOI, in the US real estate industry. It is an insurance policy that covers a private residence. Besides insuring one’s home, this insurance policy also includes all the possessions kept inside it.

Homeowner's insurance has many different policies suitable for different people. Alongside providing insurance of the house and the items held within it, homeowner’s insurance also includes liability insurance. This covers accidents you, the homeowner, may cause, or that occur in the home, depending on the policy of any particular insurance.

All homeowner’s insurance policies have a liability threshold. This defines the extent of coverage the insured has if, god forbid, such a regrettable incident occurs. A mistake that people make is considering HOI as a home warranty or mortgage insurance.

The common homeowner's insurance plans in Frederick, MD, mainly cover two types of damages:

  • Interior damages
  • Exterior damage

Interior Damage

Interior damages include the destruction of all assets and possessions that take space inside your home. The two common sources of internal damage include fire damage and water leaks. Moreover, interior damage also includes loss and damage of possession due to vandalism.

Water Leakage

HOI policies cover interior damages due to water leaks. Thus, they include sudden unexpected cases of water pipe breakage or a plumbing malfunction. But some don’t cover water damage caused gradually due to leakage, sewage problems, or slow constant leaks. To know what aspects your policy covers, be careful to read the policies.

Fire Damage

This type of insurance will cover only a fire caused by an accident. In case the fire happens because of a cigarette or a nuclear blast, your insurance won’t cover the damage. Moreover, HOI does not cover any sort of nuclear hazards.

You will need to learn about your insurance policy to know exactly how much it will help you recover. If your possessions catch fire, your policy may pay you to recover the damage – or it may not. Different policies provide different coverage.


Any loss or destruction that is due to vandalism is in most homeowner's insurance policies. If there is theft on your private property, it is likely that it will be included within your insurance coverage.

But this rule is not for those homes that have been vacant for an extended time. If there are still personal belongings in those properties, HOI is not responsible for its safety. You may refer to your policy if you have more questions regarding your homeowner's insurance. For instance, if there is any kind of injury while on the property, it will also be within the policy’s coverage. However, what kind of coverage you get for injuries usually depends on how severe they are and how much treating them will cost.

Exterior Damages

There can be many reasons for exterior damages that can happen to your home. However, not all are covered by insurance. These damages are often due to natural hazards or disasters. Heavy rainstorms and hail come within the definition of such disasters.

Storm Damage

The damages caused by storms, hail, and hurricanes are usually part of your policy. Storm damage and hail can deeply affect the exterior of your home. But the good news is that almost all insurances make sure to cover that part. You may ask for compensation to cover your loss and repair your home if your home exterior takes on storm damage. Due to these natural hazards, if a tree falls on your house or there is any other kind of roof damage, it may be under the storm coverage that is part of your HOI.

Earthquakes and Floods Damages

Although many natural disasters are part of the plan when it comes to insurance, some major hazards are not. Earthquakes and flood damages will not be a part of your regular insurance policy. That means, your insurance will not help you cover the destruction if these hazards are behind it. Thus, if you live somewhere that sees these disasters often, you may want to request other special kinds of insurance.

HOI also helps you pay for repairs if your house has flood damage. In case of fire, water leakage or storms, it will help you recover your belongings. This is possible because most types of coverage include this.

All repairs and compensations are dependent on what insurance policy you choose for your home. So, the bottom line is that it’s most important to read your insurance policy thoroughly. You need to understand clearly what parts your insurance covers. That way if there is ever an unfortunate incident, you can be prepared with the knowledge of what your insurance policy covers.

Learning about your insurance policy will be worth it when you are in need of help, and have to rely on your homeowner's insurance. Feel free to contact us to find out more regarding its policies.

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