Homeowners insurance house with coins

What Does Homeowners Insurance Cover?

Homeowners insurance is one of the most common insurance types. It helps homeowners offset costs relating to a wide variety of damages and liabilities involving their household and property. These coverages are typically limited to repairs to your home and freestanding structures, repair or replacement of personal belongings, temporary relocation costs, and liabilities associated with injury or damage you cause to another person.

Homeowner's insurance isn’t legally required by the government in most cases, but if you have a home mortgage of any kind, your bank or lender will likely insist that you have appropriate insurance protections in place. But even if you don’t have a mortgage lender you need to be held accountable to, getting a homeowners policy is still a good idea.

To better understand the many benefits associated with homeowners insurance, let’s take a look at some of the top coverage options this policy type provides. Then, we’ll examine a few areas of coverage that homeowners policies may not be able to protect you.

What Homeowners Insurance Covers

Homeowners insurance, as you may have realized, comes with many key benefits that can seriously benefit you if you face damages or liabilities relating to your policy’s covered protections. Let’s look at just a few of the coverage options most homeowner's policies come with.

Home Structure

If your home’s structure is damaged, most homeowners' policies will cover any damages that are not specifically excluded. This means that if your walls, floors, windows, roof, or attached structures like porches are harmed in a covered incident, you will be granted enough money to repair the damage up to and including the complete rebuilding of your home.

Other Structures

Unattached structures like garages, sheds, fences and playhouses are covered under this policy type as well. Typically, the amount permitted is up to 10% of the total cost of your dwelling.

Personal Belongings

If your personal property and belongings are damaged or stolen, a homeowners policy can reimburse you anywhere from 50 to 70% of the cost of your home’s coverage. These belongings can include furniture, clothing, electronics, appliances, and much more.

Loss of Use

Otherwise known as “Additional Living Expenses,” loss of use coverage works to offset the costs of hotel stays, restaurants, transportation, and more if you are forced to relocate after a disaster makes your home uninhabitable.

Liability Protection

Your homeowner's policy can extend to protect you against more than just damage to your property. In fact, it can also act as liability coverage if someone sues you for harming them or their personal property. Additionally, this coverage isn’t limited to the homeowner. Anyone who lives in the home–including pets–may also be covered. This means that if your pet bites a neighbor, you may have protections included to help with any lawsuit-related costs.

Medical Payments

Similarly to liability coverage, medical payments coverage can provide you with financial protection if you cause an injury to someone else–even if it’s outside of your home. This can come in handy if you face a lawsuit relating to the injury, but no lawsuit is required before payouts can be made.

What Homeowners Doesn’t Cover

No matter how thorough your homeowner's insurance policy is, there will always be liabilities or damages that it simply cannot cover. There are supplemental plans you can purchase to make up for that extra protection, but it’s important to be aware of what coverages you may be missing before you begin looking for additional coverage. Here are just a few of the main damages and liabilities that are not covered in a typical homeowners policy:


If you live anywhere near Ocean City or Toms River, there is a higher-than-average risk that you will experience flooding. Still, despite this, the average homeowner's policy will not provide you with any flood coverage. The same is true for any water damage caused by drains or sewer backups in your area. 

Essentially, this means that if your home is damaged by water, you may have to bear the brunt of any costs entirely on your own if you don’t have a supplemental flood insurance policy.

Earthquakes, Landslides, and Sinkholes

Earthquakes, landslides, sinkholes, mudflows, mudslides, and any number of similar natural disasters are not covered under a homeowners policy. These disasters, known in insurance as “earth movements,” require separate supplemental policy types that are available through the majority of homeowners insurance carriers.


If you’re facing an infestation of almost any kind–birds, vermin, fungus, mold, or whatever else–-keep in mind that the average homeowner's insurance will not help you tackle the problem in any way.

Wear, Tear, and Intentional Damage

Over time, most properties decay in one way or another. This decay is not covered under your homeowner's policy, though supplemental policy types are available. Additionally, any damage to your home that occurs as a result of neglect or intentionally inflicted harm will not be covered.

Do You Need Homeowners Insurance?

Homeowner's insurance can be an invaluable resource. It provides homeowners with many fundamental damage and liability protections in a convenient bundle that may be difficult to obtain otherwise. 

If you’re interested in investing in a homeowner’s insurance policy, contact our helpful agents today!

exterior of apartment building

The Difference Between Homeowners And Rental Insurance?

Regardless of where you live, having insurance for your belongings is one of the most important things that you will ever need. You never know what could happen, so being insured will at least give you peace of mind, knowing that you have some relevant protection to fall back on if needed.

An important consideration in all this is making sure you know which kind of insurance you need, so you aren't hurting yourself financially by purchasing the wrong insurance policy.

Two of the main policies that you might need for your home are homeowners insurance and rental insurance. But what are they, and what are the major differences between them? By the end of this post, you will be well informed on these two types of insurance, and you’ll know which you might need for yourself.

The Similarities Between Homeowners and Rental Insurance

Before we get into how they differ, it might be helpful to go over what the similarities are between these two types of insurance.

The biggest similarity is that they both protect your belongings. However, how they do so differs a lot, as you shall shortly see. They also both require regular payments, either monthly or in a single lump sum. In both cases, the payment schedule must be in good standing in order to receive compensation on a claim.

As you can see, there are some similarities, and they are features which are shared by most insurance policies of all kinds in every sector. Now let's look at their differences.

The Difference Between Homeowners and Rental Insurance

The differences are important to note, and will determine what coverage you are getting. The main difference to remember is that homeowners insurance covers the actual building that you are living in, as well as all the belongings inside, up to a certain value laid out by the policy, while with renter’s insurance, the landlord pays for the insurance of the building, and your insurance covers only your belongings inside the home.

For homeowners insurance, you will normally have to have such a policy in place if you are hoping to take out a mortgage. It's normally a requirement of the lender to have it, as it protects their interests as well as yours. It is also typically more expensive than rental insurance, as you are covering a building and not just personal property.

With renter’s insurance, tenants take it out, covering items and liability, which is not the responsibility of the landlord. So, as well as helping to protect you from losses, it also acts as an important legal buffer for the landlord and the tenant. You can never assume that a landlord’s insurance will cover anything inside the property, so rental insurance can fill in the gaps.

Going Deeper into Homeowners Insurance

Now that we have outlined the essential differences between the two types of insurance, let’s look deeper into each to see some details that you might need to know before taking out a policy for yourself. First, we’ll look at the ins and outs of homeowners insurance.

A homeowners policy is always taken out by whoever owns the home itself. The amount of insurance will cover both the property and any belongings within the property. That includes furniture and white goods, clothing and kitchenware, and so on, alongside any garden items. It also includes valuables such as jewelry.

It is also sometimes possible to have extra liability insurance added for belongings, even ones lost outside the home, and this will add to the premium that is being paid for the policy.

The Details of Rental Insurance

Now let’s look a little more at rental insurance. With this, the property itself is not being covered. Instead, this kind of insurance assumes that whoever owns the building or complex has insurance. Rental insurance instead covers all the tenant’s belongings within the home.

With rental insurance, you are covered for the cost of replacement of any items that are lost or damaged on the property. Many times, it can be extended to items stolen from your car or at work for an additional premium.

Should You Get Homeowners or Rental Insurance?

It’s important to understand when you need to get insurance, so you can make sure that you are as fully protected as possible at all times. If you own property, it is wise to get homeowners insurance. It is not a legal requirement except in certain niche circumstances, but you will do well to protect yourself in this manner.

Likewise, anyone renting property should consider rental insurance if they want to protect their belongings from theft, loss or damage. Again, it is not a legal requirement, unlike some kinds of insurance, but it is typically worth the premium if something ends up happening to your belongings.

If you are wondering about homeowners or rental insurance, speak to the professionals. Getting in touch with a professional insurance broker is the best way forward if you are considering getting insured. They will help you find the right policy for your needs, so you're protected.

key hanging in front door of home

4 Ways Homeowners Insurance Can Protect You

Your home's physical structure is usually the most significant investment you'll make in your lifetime. Homeowners insurance helps protect that investment by covering repair or replacement costs if your home is damaged or destroyed.

However, many people don't know that homeowners insurance can also protect them in other ways. In this blog post, we will discuss four different ways homeowners insurance can help you in the event of an emergency. The goal is for you to understand what it covers and how it can help you.

So what exactly does homeowners insurance protect?

Liability Coverage

This type of coverage is designed specifically for accidents that can occur on your property. If someone is injured while visiting your house (such as a child falling out of your tree), then this policy will pay out per person or per accident based on the limits in the policy.

Home Structure Coverage

This type covers damage caused by fire, windstorms, hailstorms, or snowfall. It also provides coverage for structures attached to your home, such as a garage. The goal of this coverage is to protect the physical structure of your home in case of damage, theft, or vandalism.

Personal Belongings Coverage

Homeowners insurance will cover your belongings in case of a burglary, and it even will protect you if your items are stolen away from your home. For example, if someone breaks into your car and steals your laptop, the homeowners insurance policy will help to replace it. Check your policy documents for the exact limits they cover you for.

Additional Living Expenses

If something happens to your home and you can't live in it while it is being repaired, then additional living expenses (ALE) coverage will help to pay for the costs of living somewhere else. This includes hotel rooms, restaurant meals, and even laundry services. Most policies have a limit of about $2000 per month. Again, check your policy documents to know the exact limits they cover you for.

Review Your Policy Annually

Make sure you review your homeowners insurance policy regularly to ensure that it still meets your needs. You may want to add or remove coverage depending on changes in your life. For example, if you have children who are now adults, you may no longer need coverage for their personal belongings.

For more information about homeowners insurance, please visit our website or contact us today. We at Calhoun Agency, Inc. would be happy to answer any questions you have.

What To Know Before Your Next Vacation

According to the FBI, a home is burglarized every 15 seconds in the United States – resulting in an average valued loss of $2,188.Follow these vacation safety tips to keep your home and family secure while you’re away – and you can even use some of these tips when you’re home.

To secure your home all year long, install the following:

  • Home security system
  • Strong exterior doors made of solid wood or steel
  • Deadbolt locks
  • Motion-activated sensors on outdoor floodlights
  • Block windows or locked window well covers for the basement
  • Locks for your pet doors

For more tips on deterring break-ins year-round, check out the home burglary prevention page.


  • Resist the urge to mention your trip on social media or in public. You can always post the pictures (and re-live the vacation) once you’re back home.
  • Make an inventory of your valuables, including serial numbers and photos.
  • Stop the newspaper and mail, or ask a trusted neighbor to pick them up.
  • Park your car inside the garage – and ask a neighbor to park in your driveway occasionally.
  • Put at least one light on a timer.
  • Arrange for your lawn to stay trimmed.

Even if the best vacation safety precautions fail to keep burglars out of your house, you don’t have to make it easy for them if they get in. Some ways to make their “job” harder and protect yourself:

  • Don’t keep expensive jewelry on your bedroom dresser.
  • Don’t store your expensive flatware in the dining room hutch or china cabinet.
  • Keep important documents, financial information & small valuables in a fireproof safe, discreetly hidden in your house.

No matter the precautions taken to prevent theft, sometimes the unexpected still happens. In the event thieves break into your house, steal your personal items or damage your home, home insurance may be able to help you.

Thank you Nationwide for this informative article!





Why Should I Conduct A Home Inventory?

For business owners – retailers, in particular – it can be a daily ritual: the inventory process. Companies have to be aware of the specific items that sold over a given period so that more can be ordered, replenishing their store shelves to keep patrons happy. For the sake of customer satisfaction alone, this makes creating an inventory a must-do component to keeping things up and running.

If only everyday Americans had the same motivation.

Conducting a home inventory can seem like one more thing to do when you’re already busy enough as it is. But, devoting some of your time to the process really is worth it – in every sense of the word. The following are several reasons why it pays to take stock of your stuff:

Expedites the claims process
After sustaining a loss in a fire, weather-related disaster or theft, filing a homeowners insurance or renters insurance claim can help replace the belongings that were damaged or destroyed. By knowing what specific items were spoiled or wrecked, you make the claims process easier for you and the insurer, helping expedite the claims process.

Helps determine the proper amount of coverage
When you own or rent a residence, insurance is crucial. But, how do you know the proper amount of content coverage you need? Conducting an inventory can help determine this. A thorough review of the things that you own – and the establishment of a value for each – will give you a better assessment of how much coverage is adequate, so you’re fully protected.

Keeps track of what’s what
The average American accumulates an enormous amount of junk over a given year, so you can only imagine how much stuff is compiled over a lifetime. Creating an inventory is a tangible way of assessing your most valuable possessions and what it would take to replace them should an unfortunate event occur.

There are a wide variety of ways to complete a home inventory, almost as diverse as the things you own. The Insurance Information Institute offers a free example in the form of an app that you can download to a mobile device. If you’re a visual person, the app allows you to take pictures of your items and document them with written details of when each was purchased and the cost.

You can also keep an inventory by maintaining a notebook, along with a brief description of each item. You may want to categorize the items listed by the room in which they’re situated or classified, like kitchen items, electronics and jewelry.

For more information on creating an inventory that works for you, speak with your independent agent.

Thank you Selective for this helpful article!



Insurance Information Institute – Brochure: Home Inventory

Insurance Information Institute – Know Your Stuff® Home Inventory