Homeowners Insurance


DEFINITION of 'Homeowners Insurance'

A form of property insurance designed to protect an individual's home against damages to the house itself, or to possessions in the home. Homeowners insurance also provides liability coverage against accidents in the home or on the property.

In the U.S. there are seven forms of homeowners insurance that have become standardized in the industry; they range in name from HO-1 through HO-8 and offer various levels of protection depending on the needs of the homeowner.

Also known as "homeowner's/homeowners' insurance."


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BREAKING DOWN 'Homeowners Insurance'

While homeowners insurance covers most scenarios where loss could occur, some events are typically excluded from policies, namely: earthquakes, floods or other "acts of God" and acts of war.

For people who live in certain parts of the country, adding an extra policy for earthquake insurance or flood insurance can be a good idea to offer further home protection and peace of mind. Some homeowners insurance is designed for renters, typically HO-4 or "renters insurance", and only covers possessions within the home and isolated events not covered in the property insurance held by the owner.

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  1. Does homeowners insurance cover tree damage?

    An all-perils homeowners insurance policy covers damage from trees in the event that it happens suddenly and by accident. ... Read Full Answer >>
  2. Does homeowners insurance cover roof replacement?

    A typical all-perils homeowners insurance policy covers the replacement of a roof, regardless of age, only if it is the result ... Read Full Answer >>
  3. Does homeowners insurance cover fires?

    House fires are one of the most common causes of damage to homes, and almost every homeowners insurance policy covers against ... Read Full Answer >>
  4. Does homeowners insurance cover broken pipes?

    An all-perils homeowners insurance policy does not usually provide coverage for an actual broken pipe. However, the water ... Read Full Answer >>
  5. Does homeowners insurance cover roof leaks?

    Roof leaks are covered under all perils homeowners insurance policies if the leak was caused by an act of nature. Acts of ... Read Full Answer >>
  6. Does homeowners insurance cover termites?

    Most homeowners insurance policies do not cover termite damage. An all-perils policy typically excludes coverage from termite ... Read Full Answer >>
  7. Does homeowners insurance cover mold?

    Homeowners insurance covers mold if you purchase the coverage rider. In some states, the coverage is included automatically, ... Read Full Answer >>
  8. What's the difference between renter's insurance and homeowner's insurance?

    Whether you rent or own your home, the property as well as its contents should be protected with insurance. For those who ... Read Full Answer >>

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