Don't miss out on a homeowners insurance claim because you don't realize what your coverage includes.
7 Things You Didn’t Know Your Homeowners Insurance Covers
Updated on Oct. 11, 2024
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Additional Living Expenses
When the worst happens, ALE or ‘loss of use’ coverage means you won’t have the additional stress of squeezing your family into a friend’s spare room. “If your home is inhabitable due to a covered loss, your insurance company will pay for you to stay somewhere else until you can move back into your home,” Parsons says.
In addition to picking up the check for a hotel, Airbnb, or other temporary accommodation, insurers might also cover things like pet boarding, laundromat services, dining out and temporary storage space.
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Damage to Structures Other Than Your Home
Parsons says homeowners insurance coverage commonly includes ‘other structures’ on your property, like sheds, gazebos, barns or detached garages. It’s sometimes referred to as ‘Coverage B.’ The amount you can claim is typically up to 10 percent of the coverage limit for your home. However, if you use the structure to run a business, this might not be covered.
Even if this isn’t included in the main policy, it’s often possible to purchase an add-on that allows for repairs or replacement of a much-used workshop, guesthouse, luxury swimming pool or newly installed perimeter fencing if damage occurs during hurricane season or after hail hits.
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Emergency Responders Damage
Your homeowners insurance policy might cover damage to your property resulting from police, firefighter or paramedic interference. Parsons offers the example of first responders breaking down your home’s front door in an emergency. However, always check the small print for this peril coverage. The insurer typically won’t pay out if the police have a search warrant or the homeowner is involved in criminal activity.
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Falling Objects
“If a meteorite hits your roof, your insurance will likely cover it,” Piotrowski says. While the chance of this happening is slim to none, you won’t have to worry about a big bill if that old oak tree on your street drops a diseased branch onto your siding, providing an avalanche or earthquake hasn’t dislodged it. If your policy includes this coverage, roof damage from anything falling from the sky is covered. This includes unlikely space debris, parts of a plane, a dead bird, or a drone.
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Food Spoilage
There’s nothing worse than coming home and finding your freezer full of luxury Thanksgiving goodies has defrosted. “Your policy might cover food spoilage from a power outage or damages to items stored away from your home,” Piotrowski says. NOTE: Always check the deductible amount for this peril to understand if making a claim is justifiable.
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Theft Outside of the Home
It’s not just valuables stolen from your home that insurers can reimburse you for. Coverage often extends to personal belongings stored outside of your property. Parsons offers the example of your daughter’s clothes, mobile phone and laptop being lifted from their college dorm room. It could also cover personal items stolen from a storage unit or your car.
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Third-Party Medical Expenses
Homeowners insurance doesn’t just cover damage and theft; it also provides protection if someone gets injured on your property (whether you are legally liable or not). This coverage can be invaluable, as these scenarios can be financially ruinous.
Parsons provides this scenario as an example. “Say your son was goofing around with a baseball bat and accidentally hit a friend in the eye with the tail end of the bat,” she says. “If the friend’s family sues for medical expenses and pain and suffering, you would be covered.”
Frequently Asked Questions
Is homeowners insurance required?
Homeowners insurance coverage isn’t a legal requirement in the U.S. However, mortgage lenders won’t approve a loan to buy a new home if you haven’t secured a policy, and you risk facing major financial hardship if disaster strikes.
About the Experts
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Pete Piotrowski is the Chief Claims Officer at Hippo Insurance Services and has over 35 years of experience in the industry; email interview, Aug. 19, 2024.
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Colleen Parsons is an independent insurance agent with World Insurance Associates. She’s been helping homeowners in Western New York with their insurance for over twenty years; email interview, Aug. 20, 2024.
