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What does homeowners insurance cover?

Quick answer
Standard homeowners insurance covers sudden damage from fire, wind, hail, lightning, theft, and certain water events. It does NOT cover flood, earthquake, gradual wear, mold from maintenance issues, or normal HVAC and appliance failure.
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Financing options

Most homeowners pay cash for smaller jobs, use a HELOC or home equity loan for larger projects, or take a renovation loan when equity is limited.

Insurance considerations

Most policies pay actual cash value on older items (depreciated). Pay extra for replacement-cost coverage on roofs and personal property.

Common mistakes

Common mistakes to avoid

  • Assuming flood is covered (it isn't)
  • Underinsuring rebuild cost
  • Not bundling with auto for discounts
  • Skipping replacement-cost endorsements

Where to go next

Four pathways to keep going on this question.

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Last updated: 1970-01-01