Homeowner’s Insurance: Understanding What’s Covered

Homeowner’s insurance is designed to protect you from various financial risks related to your property. However, it’s not always clear what specific events or damages are covered under your policy. From siding replacement to burst pipes, many homeowners have questions about how their insurance will step in to help. In this article, we’ll address five key questions about homeowner’s insurance and home warranties, so you can better understand your coverage and make informed decisions.

What is a Dwelling House?

A lot of people don’t know how to define dwelling house. The term dwelling house refers to the main structure on a property that serves as the living space for the homeowner and their family. In the context of homeowner’s insurance, dwelling coverage provides financial protection for damage to this structure. The dwelling includes:

• Exterior walls and roof of the house.
• Built-in appliances like water heaters and furnaces.
• Attached structures, such as a garage or porch.

Dwelling coverage is one of the key components of homeowner’s insurance and is typically listed as Coverage A on your policy. This coverage ensures that if your home is damaged or destroyed by a covered peril (like fire, wind, or hail), your insurance will pay for repairs or reconstruction up to the policy limits.

It’s important to note that dwelling coverage usually applies only to the main house and attached structures. Separate structures, like detached garages, sheds, or fences, are covered under a different section of the policy known as other structures coverage (Coverage B).

Does Homeowner’s Insurance Cover Siding Replacement?

Siding plays an important role in protecting your home from the elements, and when it’s damaged, repairs or replacement can be costly. Whether or not homeowner’s insurance covers siding replacement depends on the cause of the damage.

Covered Perils for Siding Damage Homeowner’s insurance generally covers siding replacement if the damage is caused by a covered peril, such as:

• Windstorms: If a storm rips off or damages your siding, the replacement cost is typically covered.
• Hail: Hailstorms can cause significant damage to siding, and this is often included under most homeowner’s insurance policies.
• Fire: If a fire damages your home’s siding, insurance will likely cover the cost of repairs or replacement.
• Falling Objects: If a tree branch or other object damages your siding during a storm, you can usually file a claim.

Excluded Perils Damage from perils not covered by your policy will not be reimbursed. Some common exclusions include:

• Wear and Tear: If your siding deteriorates over time due to aging or poor maintenance, it won’t be covered by insurance.
• Pest Damage: Issues caused by termites, rodents, or other pests are typically considered a maintenance issue, and repairs must be handled at your own expense.
• Floods and Earthquakes: Most standard homeowner’s insurance policies do not cover flood or earthquake damage. Separate policies are required for these perils.

If your siding is damaged, it’s important to check the details of your policy and understand what perils are covered.

Does a Home Warranty Cover Water Damage?

A home warranty is different from homeowner’s insurance, and its coverage is more limited. A home warranty typically covers repair or replacement costs for systems and appliances, such as your HVAC system, plumbing, electrical system, and kitchen appliances. However, when it comes to water damage, a home warranty usually does not provide coverage.

Home Warranties and Water Damage A home warranty covers appliance or system malfunctions, but it generally does not cover the water damage caused by these issues. For instance, if your water heater breaks down and causes flooding, a home warranty may cover the repair or replacement of the water heater, but it won’t pay for the damage caused by the water. In this case, you’d need to rely on your homeowner’s insurance to cover the water damage.

To protect against water damage, you’ll need to rely on your homeowner’s insurance policy. Home warranties are useful for managing repair costs for systems and appliances but are not intended to cover structural damage to your home.

Does Insurance Cover Burst Pipes From Freezing?

Yes, most standard homeowner’s insurance policies cover burst pipes caused by freezing, but only under certain conditions. Insurance companies expect homeowners to take reasonable steps to prevent pipes from freezing, so the extent of coverage depends on whether the damage was avoidable.

When Burst Pipes Are Covered If a pipe bursts due to freezing and causes water damage to your home, your homeowner’s insurance will likely cover the cost of repairs, including:

• Water damage to walls, floors, or ceilings.
• Repair or replacement of damaged personal property.
• Plumbing repairs to fix the burst pipe.

For insurance to cover the damage, you must typically demonstrate that you took preventative measures, such as keeping your home heated during cold weather or properly insulating pipes. If the insurance company determines that negligence or lack of maintenance contributed to the burst pipes, your claim may be denied.

Preventative Measures Taking simple steps can reduce the risk of burst pipes and help ensure your insurance covers any related damages. Some preventative measures include:

• Keeping your home heated to at least 55 degrees Fahrenheit during winter.
• Insulating exposed pipes in areas like the basement, attic, or crawl spaces.
• Letting faucets drip slightly during extreme cold to prevent freezing.

As long as you’ve taken reasonable steps to prevent freezing, your homeowner’s insurance should cover the cost of repairs if a pipe bursts.

Does Homeowner’s Insurance Cover Car Accidents?

Homeowner’s insurance typically does not cover car accidents. Car accidents and vehicle-related damages fall under your auto insurance policy, not your homeowner’s insurance. However, there are some specific situations where homeowner’s insurance may come into play, such as:

• Personal Property Damage: If your car is parked in your garage and an event like a fire or storm damages both your car and your home, your homeowner’s insurance may cover damage to the home, while your auto insurance would cover damage to the vehicle.
• Liability Coverage: If a visitor’s car is damaged by a falling tree branch from your property, the liability portion of your homeowner’s insurance may cover their damage. However, this would depend on the specifics of your policy and the situation.

For car accidents and vehicle-related damage, auto insurance is your primary source of coverage. Be sure to maintain adequate auto insurance to cover your vehicle in case of an accident.

Understanding Homeowner’s Insurance Coverage

Homeowner’s insurance is designed to protect you from a wide range of risks, from structural damage to liability claims. It’s important to understand exactly what your policy covers and what it doesn’t, so you’re prepared when disaster strikes.

• A dwelling house refers to your main living structure, which is protected under the dwelling coverage of your homeowner’s insurance.
• Siding replacement is typically covered if the damage is caused by a peril listed in your policy, such as storms or fire.
• A home warranty covers system repairs but doesn’t extend to water damage.
• Burst pipes from freezing are covered as long as preventative measures were taken.
• Car accidents are not covered by homeowner’s insurance, though certain property-related damages might be.

By understanding these key aspects of homeowner’s insurance, you can ensure that your home and belongings are properly protected and avoid any unpleasant surprises when it comes time to file a claim.