You wake up during a storm to a loud noise, and then suddenly, an even louder one. A tree just fell on your house. Now you must contact your insurance agency to make your claim. Only when you make your claim do you realize that you don’t know much about homeowners’ insurance. What is homeowners’ insurance? What does your homeowner’s insurance policy cover? Read below to find out all about homeowners insurance. This article will help you understand the importance of homeowners insurance and what coverages may be best for you. 

Importance of Homeowners Insurance

Homeowners insurance provides protection financially against losses and damage due to disasters, theft, and other incidents. It is not only Important to have because it protects homes and personal property, but it is also able to protect a homeowner from liability.  

Homeowners insurance protects the homeowner from lawsuits that involve the home and property. It can also provide legal liability coverage for damage to property or injuries that occur from another person within the property confines. It can also protect the equity of the home. In the event of total loss, homeowners’ insurance can provide the primary source of rebuilding funds for the homeowner.  

What is Protected Under Homeowners Insurance?

Many times, homeowners find themselves asking what is protected within their plans. Knowing what your insurance policy covers is a great first step to being better protected. This means knowing the overall details and benefits as well.  

What is Included in a Typical Homeowners Insurance Policy?

A Standard homeowners insurance policy includes assisting in restoring your home when damaged due to storms, fire, wind, or other causes like, property, personal belongings, or other assets in your home. This can include things like furniture, pets, and more dependent upon your policy. 

Types of Homeowners Insurance

There are many types of homeowners insurance. There are a few main types of homeowners insurance coverage–dwelling, other structures, personal property, and personal liability, with others available as well. Often an insurance firm will combine these common types of coverage together with other coverages to give you everything you need in one plan.  

Dwelling Coverage

Dwelling is the most basic form of protection for homeowners. What does dwelling coverage cover? It provides protection for the structure of your home, including floors, walls, ceilings, and any attached structures. The main purpose of dwelling coverage is to protect from peril like storms, fire, hail, theft, and vandalism. Most insurance agencies consider dwelling coverage to be insufficient coverage by itself. This is due to dwelling not covering everything no matter the policy limit. A policy limit will allow you to rebuild your home based on an agreed upon value. However, it will not protect a homeowner’s belongings within the home or provide liability coverage, leaving the homeowner to foot the bill if items are damaged, stolen, or they are sued.  

Personal Property Coverage

Personal property coverage is common in most home insurance policies. Belongings coverage protects items in the home. If an incident occurs, and is within the current coverage plan, a homeowner will receive funds for the value of those said items based upon that policy. Some items that could be included in this coverage can be furniture, clothing, electronics, children’s toys, or even expensive items like jewelry.  

Personal Liability Coverage

Personal liability coverage protects the homeowner from liability in case someone was to sustain an injury in your home or on your property. It also protects a homeowner from damaged property because of a bodily accident that occurs within the confines of your coverage plan.

Other Homeowners Insurance Coverage Types

Some homeowners have structures on their property that are not attached to their house. Other Structures Insurance coverage will provide coverage to other buildings like detached garages, sheds, workshops, gazebos, or even fences. This type of coverage will ensure that if damage occurs to these constructs, they will be protected. 

What is Not In My Homeowners Insurance Policy?

While homeowners’ insurance covers many things, some things are not covered. While the examples below are not typically covered in a normal insurance policy for homeowners, there are options available to ensure that you are not paying out of pocket if an incident occurs. A few examples of issues and factors that are not typically represented in standard insurance policies can include: 

  • Problems that result from neglect
  • Damage to the home from insects or animals 
  • Rust to pipes, siding, etc.  
  • Rot & mold to the home  
  • Earthquakes, floods, and other natural disasters  
  • Normal wear and tear  

What Affects the Price of Homeowners Insurance?

There are many factors that influence the cost of homeowners insurance. Some factors a homeowner can control, some factors a homeowner cannot control. Factors in your control include selecting a provider, additional coverage, and bundles. Analyzing your options carefully is very important to get the best coverage for the lowest rate.  

Some factors that influence the cost of homeowners insurance that a homeowner can control include:  

  • The area in which the homeowner lives. 
  • The amount of coverage homeowners selects for their home. 
  • Security and Safety features that the home has. 
  • The credit history of the homeowners. 
  • Additional types of coverage available for homeowners. 
  • Deductible rates that are chosen with the insurance plan. 
  • Bundling other insurance policies together. 

Some factors that influence the cost of homeowners insurance that a homeowner cannot control:  

  • The cost of the home versus the cost to rebuild the home. 
  • The home’s age and condition.  
  • The rate of crime in the area around the home. 
  • If there are frequent natural disasters in the area. 
  • Insurance providers’ current rates and discounts. 

Finding the Right Balance

While there are outside influences that may cause rates to fluctuate, the main thing a homeowner can do is make sure that they never pay for more than what they need. Often homeowners pay high rates because they have too much in their insurance policies. On the other hand, if your protection plan does not have enough coverage, you could be left having to fix your home without assistance. This could cause a homeowner to spend much more money out of pocket compared to if they’d had the correct coverage to start.  

Other Important Coverage for Homeowners

Having the right coverage is important. When you are thinking about homeowners’ insurance, there are other additional coverages that could prove beneficial. Some of these additional coverages include flood insurance, hurricane insurance, fire insurance, and earthquake insurance. For example, if you are in an area with frequent flooding, flood insurance could be something you could consider adding into your coverage plan.    

Need Help with Homeowners Insurance?

Here at Inter-Agency Insurance our experienced staff believes that our offered services, mutual trust with clients, and numerous benefits lead to long-term and advantageous partnerships of all scales.   

We want to provide you with the best possible coverage available that is why we represent 45+ insurance providers, to ensure that we find the most competitive policy to meet your unique needs. Whether you’re looking for a local East Tennessee insurance agency to represent you, or if you are looking for an experienced agent to assist you, we have it all for you.  

Ready to take the next step towards great coverage? Let Inter-Agency Insurance Services, Inc. be an advocate for you, earn your trust, and design a plan for your personal coverage. Contact us at Inter-Agency Insurance Services by calling (865)-637-4519 or email us at