Homeowners Insurance

What does homeowners insurance cover?

Most standard policies combine property coverage and financial protection if you hurt someone or damage their property. Check your limits and exclusions for each part:

• Dwelling: Repairs or rebuilds your house after covered damage.
• Other structures: Covers detached buildings, such as a garage or shed.
• Personal property: Covers belongings against theft and covered damage.
• Liability: Covers certain injuries or property damage you, family members, or pets cause others.
• Medical payments: Provides no-fault coverage for injured guests' medical bills, without a liability claim.
• Loss of use: Pays additional living expenses while covered repairs keep you out of your home.

Our coverage guide explains these protections in more detail.

What does homeowners insurance exclude?

Standard policies exclude flood, earthquake, and routine wear and tear. Insurance isn't a maintenance contract. The most popular form, the Special Form, insures your property against all perils except those the policy specifically names as not covered.

Coastal policies often exclude wind and hail. Mold or sewer backup protection may need an endorsement, meaning an addition to your policy.

Floods can happen anywhere. Separate flood insurance is required for homes in high-risk flood areas with mortgages from government-backed lenders. FEMA's 2026 guidance says National Flood Insurance Program policies typically have a 30-day waiting period.

How much homeowners coverage do you need?

Insure your dwelling for its full rebuilding cost, not its market value, which includes land. Our guide to how much home insurance you need is a starting point; review your estimate with an insurance professional.

The NAIC's 2022 guide warns that coverage below 80 percent of full replacement cost may reduce a claim payment.

Replacement cost pays current repair or replacement prices. Actual cash value subtracts depreciation, meaning lost value from age and wear. Check how your house and belongings are valued separately. Review belongings and living-expense limits, and consider umbrella insurance for liability protection beyond your homeowners policy.

How do homeowners deductibles work?

A deductible is your share of a covered property loss. It generally applies per claim, not to liability. A higher deductible generally lowers the premium but leaves you paying more after damage.

Percentage deductibles use your home's insured value, not the repair bill. The NAIC's June 2025 guidance says hurricane deductibles can vary from 1 percent to as high as 15 percent of insured value.

Hurricane, named storm, and wind or hail deductibles can have different triggers. Check your declarations page, the policy summary, and ask when each deductible applies.

Why does your lender require insurance?

Lenders generally require proof of coverage while you have a mortgage because they want the property protected by insurance. Texas's insurance department says Texas law itself doesn't require home insurance.

You may pay premiums through escrow, where your lender holds part of your mortgage payment and pays the insurance bill. You can still shop independently. If coverage lapses, lender-purchased insurance may cost more and protect only the lender.

How should you shop and handle claims?

Premiums depend on rebuilding cost, construction, location, fire protection, claims history, and your deductible. Insurers often check Comprehensive Loss Underwriting Exchange reports, called CLUE reports, for property and personal claims history. Many states also allow credit history to affect pricing.

Compare matching limits, exclusions, deductibles, and claims service. Choose a deductible you could afford after a loss.

For a claim, report damage promptly, photograph it, list damaged belongings, and make only temporary protective repairs before inspection. Try to attend the adjuster's visit. Claims can affect premiums and renewal, so weigh small losses against your deductible.

Once you've settled on coverage needs, compare homeowners insurance quotes using those same choices.