The 4 Major Types Of Coverage For A Homeowner's Insurance Policy

Whenever you discuss policy options with a homeowner's insurance provider, you need to think about the different types of coverage. It is one thing for a policy to be cost-effective and provide good coverage in terms of dollar value. However, the policy also has to specify that it'll cover particular things. Otherwise, you might find that you don't have as much coverage as you need. To that end, you should understand what the different types of coverage are.


Dwelling coverage is the core of homeowner's insurance. It covers the structure itself and any attached structures. For example, if a tree branch punches a hole through the roof during a storm, then dwelling coverage is what pays to repair the damage. Dwelling coverage also addresses damage from fires so it should be part of every policy.

Personal Property

The contents of your house are different than the home itself for insurance purposes. If you want coverage to protect your TV against theft, for example, then you need a personal property provision in your homeowner's insurance policy. Anyone who has a decent amount of valuables in their house should consider personal property coverage. Even if you don't have expensive collectibles, replacing your clothes, appliances, dishes, and furniture can add up in the aftermath of a disaster.

Notably, you may need separate terms for personal articles. These are smaller items like jewelry and collectibles. If you have such high-value items, talk with a homeowners insurance provider about the provisions for personal articles.

Third-Party Liability

Suppose there's a crack in the sidewalk leading up to your porch. Worse, a visitor trips on that crack and suffers a spinal fracture. The visitor sues you for injury compensation because they believe you were negligent for not fixing the crack. If you don't have third-party liability coverage, you could be on the hook for paying the injured person. However, a homeowner's insurance policy can provide a third-party liability policy to guard against any mishaps that might happen on your property.

Specific Disasters 

You might assume that dwelling coverage should address events like earthquakes or floods. However, insurers often separate these specific disasters from the dwelling coverage terms. This is especially common if you live in a high-risk region. 

You should always make sure that your homeowner's insurance covers specific types of disasters. If you live in a flood plain, for example, you may have to acquire a separate flood insurance policy.

Contact a local homeowner's insurance provider to learn more.