From Fires To Floods: What A Standard Homeowners Insurance Policy Protects

Owning a home is one of life’s biggest investments, and protecting it from unexpected disasters is essential. While homeowners insurance provides a financial safety net, many homeowners don’t fully understand what’s covered—and what’s not.

From fires and storms to theft and liability, a standard homeowners insurance policy offers broad protection. However, not all disasters are covered—and knowing the difference can save you from costly surprises.
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In this guide, we’ll break down what a standard homeowners insurance policy protects, what’s typically excluded, and how to ensure you have the right coverage for your home.

What a Standard Homeowners Insurance Policy Covers
A standard homeowners insurance policy (HO-3) provides comprehensive coverage for your home, personal belongings, and liability protection. Here’s what’s typically included:

1. Dwelling Coverage (Your Home’s Structure)

• Covers damage to the home’s structure, including walls, roof, floors, and built-in appliances.
• Protects against fire, windstorms, hail, lightning, vandalism, and more.
• Pays for repairs or full reconstruction if damage is caused by a covered peril.

💡 Example: A lightning strike sparks a fire in your attic, causing extensive damage. Your insurance will pay to repair or rebuild your home.

🚨 What’s NOT Covered: Flooding, earthquakes, normal wear and tear, and neglect.

2. Other Structures Coverage (Detached Garages, Sheds, Fences, etc.)

• ✔ Covers detached structures on your property, such as:

- Garages
- Sheds
- Fences
- Gazebos

💡 Example: A windstorm knocks down your fence. Your policy will cover the cost of repairs.

🚨What’s NOT Covered: Damage from floods or earthquakes unless you have additional coverage.

3. Personal Property Coverage (Your Belongings)

• Covers furniture, clothing, electronics, and other personal items if damaged or stolen.
• Includes theft protection even if your belongings are stolen outside of your home.
• Some policies reimburse full replacement costs, while others only cover actual cash value (depreciated value).

💡Example: A burglar breaks in and steals your laptop and jewelry. Your policy will pay to replace the stolen items.

🚨 What’s NOT Covered: High-value items like jewelry, art, and collectibles may have coverage limits—you may need additional riders for full protection.

4. Liability Protection (Lawsuits & Medical Bills)

• Covers legal expenses and settlements if someone sues you over an injury on your property.
• Pays for medical bills if a guest is injured at your home.
• Covers incidents inside and outside your home (e.g., your dog bites someone at a park).

💡 Example: A delivery person slips on your icy walkway and breaks their arm. Your insurance covers their medical expenses and any legal claims.

🚨 What’s NOT Covered: Intentional injuries or business-related liability (if you run a business from home).

5. Additional Living Expenses (ALE) / Loss of Use Coverage

• Pays for temporary housing, meals, and other expenses if your home becomes unlivable due to a covered event.
• Covers hotel stays, rental housing, and even pet boarding.

💡Example: A fire forces you to move out for two months. Your policy covers the cost of a rental home while repairs are made.

🚨 What’s NOT Covered: Extended stays due to evictions, non-covered damages, or voluntary home renovations.

Common Disasters Covered by Homeowners Insurance
Standard homeowners insurance policies protect against a wide range of disasters, including:

• Fire & Smoke Damage – House fires, kitchen fires, electrical fires.
• Wind & Hail Damage – Tornadoes, hurricanes, severe storms.
• Lightning Strikes – Covers fire damage caused by lightning.
• Theft & Vandalism – Covers stolen property or damage caused by break-ins.
• Falling Objects – Tree branches, debris, or objects damaging the roof.
• Water Damage (Some Types) – Burst pipes, plumbing leaks, and appliance malfunctions.

💡 Tip: Even if your policy covers these perils, check coverage limits to ensure you’re fully protected.

What a Standard Homeowners Insurance Policy Does NOT Cover
Many homeowners assume their policy covers all types of disasters, but certain perils require additional coverage.
🚫 Flood Damage – Requires a separate flood insurance policy (through FEMA or private insurers).

🚫 Earthquakes & Land Movement – Not covered unless you purchase earthquake insurance.

🚫 Termite or Pest Infestations – Considered preventable damage, so it’s not covered.

🚫 Wear & Tear / Maintenance Issues – Roof leaks, plumbing problems, or foundation issues due to lack of maintenance.

🚫 Sewer Backups – Requires optional sewer backup coverage.

💡 Tip: If you live in a high-risk area for floods, earthquakes, or hurricanes, consider adding extra coverage to stay protected.

How to Ensure You Have the Right Home Insurance Coverage
Choosing the right policy goes beyond price—you need adequate protection for your home and belongings. Here’s how:

• Assess Your Risks – Do you live in a flood zone? Tornado-prone area? Ensure your policy covers local risks.
  
  
• Understand Replacement Cost vs. Actual Cash Value – Replacement cost covers the full rebuild/replacement, while actual cash value accounts for depreciation.
  
  
• Consider Additional Riders for High-Value Items – Jewelry, art, and collectibles may need specialized coverage.
  
  
• Check Liability Limits – Standard liability coverage is $100,000–$300,000, but you may need higher limits to protect against lawsuits.
  
  
• Review Your Policy Annually – Update your coverage as home values and risks change.

💡 Tip: A higher deductible can lower your premiums, but make sure you can afford it in case of a claim.

Final Thoughts: Protecting Your Home from Fires, Floods & More
A standard homeowners insurance policy offers strong protection against fires, theft, storms, and liability claims. However, not all disasters are covered—it’s crucial to understand your policy and fill coverage gaps where needed.

✅ Covers fire, wind, theft, and personal liability
✅ Protects your home’s structure, belongings, and legal expenses
✅ Pays for temporary housing if your home becomes unlivable
✅ Floods, earthquakes, and maintenance issues require separate coverage

Take action today: Review your policy, assess your risks, and make sure you have the coverage you need before disaster strikes!

📢 Need help finding the right homeowners insurance? Talk to an expert today and secure your home’s future!

At Cordell & Company Insurance Agency , we put our clients first by offering them policies that they can afford. Having insurance is a necessity nowadays, and we're here to help you out. Learn more about our products and services by calling our agency at (817) 924-4236​. You can also request a free quote by CLICKING HERE. 

Disclaimer: The information presented in this blog is intended for informational purposes only and should not be considered as professional advice. It is crucial to consult with a qualified insurance agent or professional for personalized advice tailored to your specific circumstances. They can provide expert guidance and help you make informed decisions regarding your insurance needs.