Home Insurance

Home insurance, also referred to as hazard insurance or homeowner’s insurance (commonly abbreviated as HO1 in the US real estate industry), is a type of property insurance designed to protect private residences. It combines various personal insurance protections, including:

Coverage for damage to your home and its contents
Coverage for loss of use (additional living expenses)
Coverage for loss or theft of personal possessions
Liability insurance for accidents that occur at the home or due to the homeowner’s actions

Typical Home Insurance Coverages

Section I — Property Coverages
Coverage A – Dwelling This covers the value of the dwelling itself, excluding the land. Most policies include a coinsurance clause, requiring the home to be insured for at least 80% of its actual value to qualify for replacement cost coverage. Renters insurance (HO-4) does not include this coverage but offers additional coverage for improvements.	Coverage B – Other Structures Provides coverage for structures on the property not used for business purposes, such as sheds or detached garages. Coverage is usually limited to 10–20% of Coverage A, with options to increase this limit through endorsements.	Coverage C – Personal Property Covers personal belongings, often with limits on specific categories (e.g., $200 for cash or coins). Policies typically require coverage of 50–70% of the dwelling’s insured value, which has sparked calls for more flexibility in coverage options.
Coverage D – Loss of Use/Additional Living Expenses Covers additional living expenses if the home becomes uninhabitable, including rental costs or fair rental value if part of the property is rented. It excludes services like utilities provided to tenants. Additional Coverages Includes coverage for: Debris removal Reasonable repairs Damage to trees and shrubs from specific perils (excluding wind and ice) Fire department charges Identity theft and credit card fraud Loss assessments and building additions Coverage details vary by policy type.	Exclusions Open-perils policies specify exclusions such as: Earth movement, water damage, and neglect War, nuclear hazards, and intentional loss Septic tank back-ups and power failures Exclusions like concurrent causation (when covered and excluded events cause loss simultaneously) may apply. Additional costs due to building ordinances are often excluded. Mold is generally not covered unless resulting from a sudden event like a burst pipe.	Floods Standard policies exclude flood damage. Separate flood insurance is available through the National Flood Insurance Program (NFIP) or private insurers.

Section I — Property Coverages

Coverage A – Dwelling

This covers the value of the dwelling itself, excluding the land. Most policies include a coinsurance clause, requiring the home to be insured for at least 80% of its actual value to qualify for replacement cost coverage. Renters insurance (HO-4) does not include this coverage but offers additional coverage for improvements.

Coverage B – Other Structures

Provides coverage for structures on the property not used for business purposes, such as sheds or detached garages. Coverage is usually limited to 10–20% of Coverage A, with options to increase this limit through endorsements.

Coverage C – Personal Property

Covers personal belongings, often with limits on specific categories (e.g., $200 for cash or coins). Policies typically require coverage of 50–70% of the dwelling’s insured value, which has sparked calls for more flexibility in coverage options.

Coverage D – Loss of Use/Additional Living Expenses

Covers additional living expenses if the home becomes uninhabitable, including rental costs or fair rental value if part of the property is rented. It excludes services like utilities provided to tenants.

Additional Coverages

Includes coverage for:

Debris removal
Reasonable repairs
Damage to trees and shrubs from specific perils (excluding wind and ice)
Fire department charges
Identity theft and credit card fraud
Loss assessments and building additions

Coverage details vary by policy type.

Exclusions

Open-perils policies specify exclusions such as:

Earth movement, water damage, and neglect
War, nuclear hazards, and intentional loss
Septic tank back-ups and power failures

Exclusions like concurrent causation (when covered and excluded events cause loss simultaneously) may apply. Additional costs due to building ordinances are often excluded.

Mold is generally not covered unless resulting from a sudden event like a burst pipe.

Floods

Standard policies exclude flood damage. Separate flood insurance is available through the National Flood Insurance Program (NFIP) or private insurers.

Section II — Liability Coverages
Coverage E – Personal Liability Protects against damages the homeowner is legally responsible for, including coverage for legal defense costs. A significant portion of claims under this coverage involve dog bites.

Home Insurance

Home Insurance

Typical Home Insurance Coverages

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