The six parts of a homeowners policy
| Coverage | What it pays for | Typical amount |
|---|---|---|
| A – Dwelling | Repairing or rebuilding your house | Enough to rebuild your home |
| B – Other structures | Detached garage, shed, fence | Often 10% of dwelling |
| C – Personal property | Furniture, clothes, electronics | Often 50–70% of dwelling |
| D – Loss of use | Hotel, meals and extra costs while you can’t live at home | Often 20–30% of dwelling |
| E – Personal liability | Injuries or damage you cause to others, legal costs | $100,000–$500,000 |
| F – Medical payments | Guests’ minor medical bills, regardless of fault | $1,000–$5,000 |
Typical amounts vary by insurer. Source: Insurance Information Institute.
What disasters are covered
Most policies cover sudden damage from fire and smoke, lightning, windstorms and hail, explosions, theft and vandalism, the weight of snow and ice, and sudden burst pipes. Some coastal states use separate wind or hurricane deductibles, often a percentage of your dwelling coverage.
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Sponsored listings. FindBestInsurance may be paid when you click them.What isn’t covered
- Flood: rising water from outside needs a separate flood policy; see our flood insurance guide.
- Earthquakes and sinkholes: need a separate policy or endorsement.
- Sewer or drain backup: usually needs an add-on.
- Wear and tear, mold, rot and pests: treated as maintenance.
- High-value items: jewelry, art and collectibles have low limits unless you add a rider.
- Business equipment and activities at home.
Choosing the right amounts
- Insure the dwelling for the cost to rebuild, not the market price.
- Choose replacement cost for belongings rather than actual cash value; see replacement cost vs ACV.
- Take a home inventory with photos or video.
- Consider higher liability limits or an umbrella policy if you have significant assets.
Frequently asked questions
Does homeowners insurance cover floods?
No. Flood damage from rising water needs a separate flood policy from the NFIP or a private insurer.
Does home insurance cover burst pipes?
Usually yes for sudden, accidental bursts, but not slow leaks or damage from poor maintenance.
What is an HO-3 policy?
The most common homeowners policy. It covers the house against all risks except those excluded, and belongings against named perils.
Is my jewelry covered?
Up to a low limit for theft, often a few thousand dollars. A scheduled personal property rider covers valuable items fully.
Sources
- Insurance Information Institute: What is covered by a standard homeowners policy?
- NerdWallet: The average home insurance cost in the U.S. for 2026 (updated May 6, 2026)
Figures checked November 7, 2026. Insurance rules and prices change and vary by state and insurer; confirm details with the insurer or your state.