What’s covered, what’s not, and how policies differ. When you’re ready, get your quote.
Quick answer: Homeowners insurance covers your home’s structure, your belongings, and your liability if someone is hurt on your property. It doesn’t cover flood or earthquake damage by default. Your price depends mostly on what it would cost to rebuild your home and where you live, not what it would sell for.
Homeowners insurance puts two kinds of protection into one policy: coverage for your home and belongings, and liability coverage if someone gets hurt on your property or you damage someone else’s things. Most mortgage lenders require it.
Most homeowners policies bundle six coverage categories, each with its own limit.
| Coverage | What It Protects | Typical Amount |
|---|---|---|
| Dwelling (Coverage A) | The structure of your home | Rebuild cost, not market value |
| Other structures (Coverage B) | Detached garage, fence, shed | Typically 10% of dwelling limit |
| Personal property (Coverage C) | Belongings inside the home | Typically 50-70% of dwelling limit |
| Loss of use (Coverage D) | Temporary housing if you can't live at home | Typically 20% of dwelling limit |
| Personal liability (Coverage E) | Injuries or damage you cause to others | Common limits: $100k-$500k |
| Medical payments (Coverage F) | Medical bills if a guest is hurt, no matter who's at fault | Common limits: $1k-$5k |
Listed from most to least common.
The most common policy. Your home is covered for anything not specifically excluded. Your belongings are covered for the risks the policy lists, like fire and theft.
Your home and your belongings are both covered for anything not specifically excluded. Broader protection, at a higher price.
For condo owners. Covers the inside of your unit and your belongings. The HOA’s policy covers the building itself.
Wildfire risk, crime rates, building costs, and which insurers are writing policies all change by location, sometimes street to street. Find your city to see what’s available where you live.
Homeowners insurance typically covers the dwelling structure, other structures like a detached garage or fence, personal belongings, liability if someone is injured on the property, medical payments to guests, and additional living expenses if the home becomes temporarily unlivable.
Standard homeowners policies exclude flood damage, earthquake damage, normal wear and tear, and damage from running a business out of your home unless you add coverage for it. Flood and earthquake coverage require separate policies, and high-value items like jewelry or fine art often need additional scheduled coverage beyond standard personal property limits.
Premiums are based primarily on the cost to rebuild the home, the home’s age and construction type, location-based risk such as wildfire or crime rates, the deductible chosen, claims history, and in most states, a credit-based insurance score. California restricts some of these factors differently than other states.
An HO-3 covers your home for anything not specifically excluded, but covers your belongings only for the risks the policy lists. An HO-5 extends that broader coverage to your belongings too, for a higher price.
Dwelling coverage should match the cost to rebuild the home at current local construction prices, not its market value or purchase price, since rebuild cost excludes land value and can differ significantly from what the home would sell for.
Usually not. A standard homeowners policy is written for a home you live in. Once you rent it out, most insurers require a landlord policy (often called a DP-3), which covers the building and can add liability coverage. If you’re renting out your home or planning to, we can help you set up the right policy.
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