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Home Ownership 101: Homeowner’s Insurance Policy Basics

What does a homeowner's insurance policy cover


The joys of home ownership are many, then there are those other aspects of home ownership we all wish we didn’t have to think about like routine repairs and having to pay for homeowner’s insurance. If you are already a home owner, then you are probably aware of the specific coverage that your insurance policy provides. You may have even had to file a claim or two over the years.


We have been receiving a lot of questions about what is actually covered under a basic homeowner's insurance policy. Below is a great resource that reviews those facts. If you have any specific questions about your policy, please call us today.

If you are a new homeowner however, it is likely you tried to get the cheapest policy possible that would satisfy loan requirements and help speed the process of your home closing along. Once you get settled in however, it is wise to take a look at the type of coverage and make sure your home and contents will be covered in case of an emergency.



Graphic: What's Covered Under a Standard Homeowners Insurance Policy?


A standard homeowner’s insurance policy will cover:

~Damages incurred by  fire, windstorms, hail, lightning and vandalism .


A standard homeowner’s insurance policy will not cover:

~Sewage problems or sewage back up in a basement. Since this can happen in any home, it is very important to purcase a rider (optional coverage) explicitly to cover sewage issues.


~Damages caused by termites, vermin or other pests.

According to the entomology department at the University of Kentucky, termites cause billions of dollars in damage a year. The worst part is, you usually don't know they're eating your home until it's too late, leaving you to wonder—does homeowners insurance cover termite damage? (Spoiler alert: You won't like the answer.)


~Damages caused by earthquakes or floods, and some water damage due to flooded basements.

She spent $125 on flood insurance that saved her $14,000 in one day! If you were ever on the fence about getting flood insurance, you need to check this out. Th


Most new homeowners are shocked to find that floods are excluded in basic insurance policies! If you live in a flood plain then there are optional policies which can be purchased to cover any losses due to those perilous acts of nature. Even if you live in an area that is typically not prone to flooding, you just never know…so in this instance it pays to spend a little more.

A coverage checklist for home insurance - Contact GCEI for a free quote!


Theft may or may not be covered in certain instances, so it is important to clarify the terms of your policy with your insurance agent.

Home insurance is crucial, our inforgraphic shows you the most common home insurance claims.


It is totally natural to be thinking about paint colors, new furniture, and landscaping ideas when purchasing a new home or renovating, but it very important to be sure that you have as much coverage as possible on your home dwelling. For more ideas on how to protect your home from loss and damage, check out my post below:

how to protect your forever home from loss and damage

How To Protect Your Forever Home From Loss And Damage


As a homeowner for over 25 years I learned many of these insurance policy ins and outs the hard way when certain losses weren’t covered. It is my hope to save you from the stress and financial loss that can happen as a result of improper coverage. I believe this outline of coverage will be beneficial and should clarify some of the questions you may have about homeowner’s insurance coverage. If you have any more questions be sure to contact your local agent and he or she can help you get the maximum amount of coverage. Don’t forget that you can always shop around for better pricing as well.

Best of luck!





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