Your home is one of your biggest investments, so having the right insurance is important.

But with different coverage options and exclusions, it’s easy to miss gaps that could leave you unprotected. This guide will help you understand home insurance basics and make sure you have the right coverage for peace of mind.

What Does Home Insurance Cover?

Most standard home insurance policies protect you in four key areas:

1. Dwelling Coverage – Pays to repair or rebuild your home if it’s damaged by covered events like fire, storms, or vandalism. This includes walls, the roof, and built-in systems.
2. Personal Property – Covers your belongings, such as furniture, electronics, and clothing, up to a certain limit.
3. Liability Protection – Helps cover costs if someone gets hurt on your property or if you accidentally damage someone else’s property.
4. Additional Living Expenses (ALE) – Pays for temporary housing and expenses if your home is unlivable due to a covered event.

What Might Not Be Covered?

While home insurance protects against many risks, some things are usually not included:

• Floods and Earthquakes – These require separate insurance policies.
• Wildfire Risks – Standard policies cover fires, but extra coverage may be needed in high-risk areas.
• High-Value Items – Jewelry, artwork, or collectibles may not be fully covered unless you add extra protection.
• Maintenance-Related Damage – Issues like mold, pests, or normal wear and tear are usually not covered.

How to Make Sure You Have Enough Coverage

1. Know Your Home’s Rebuild Cost – Make sure your dwelling coverage reflects how much it would cost to rebuild your home today, not just its market value.
2. Take Inventory of Your Belongings – Keep a list of your valuables to ensure your personal property coverage is enough. Many insurance companies offer apps to help with this.
3. Check Local Risks – If you live in an area prone to wildfires, flooding, or earthquakes, consider extra coverage.
4. Review Your Liability Coverage – If you have a pool, trampoline, or entertain guests often, you may need higher liability limits or umbrella insurance.

How to Fill Coverage Gaps

1. Get Extra Coverage for Natural Disasters – Purchase separate flood or earthquake insurance if needed. If you live in a wildfire zone, check if you have enough fire insurance.
2. Review Your Deductibles – Some policies have separate deductibles for things like fire or wind damage. Make sure yours is reasonable.
3. Choose Replacement Cost Coverage – Instead of actual cash value (which factors in depreciation), opt for a policy that covers the full cost of rebuilding or replacing damaged items.
4. Add Coverage for Expensive Items – If you own high-value jewelry, electronics, or collectibles, consider adding extra coverage.
5. Check Home Business Coverage – If you run a business from home, standard policies may not cover your equipment or liability risks. Look into additional coverage.

Ways to Save on Home Insurance

• Bundle Your Policies – Combining home and auto insurance with the same provider can lower costs.
• Increase Your Deductible – Raising your deductible can lower your premium, but make sure you can afford it if you need to file a claim.
• Improve Home Security – Installing alarms, security cameras, or storm-resistant upgrades can qualify you for discounts.
• Compare Quotes Regularly – Insurance rates change, so shop around each year to find the best deal.

Home insurance should be reviewed regularly to keep up with changes in your home and lifestyle. If you have questions or want a second opinion on your coverage, reach out. I’d be happy to put you in contact with a couple of very good insurance brokers!