A standard homeowners policy is designed to protect the structure of your home, your belongings and your liability if someone is hurt on your property. It is not designed to cover every possible loss, and the gaps tend to show up at the worst time.
What a typical policy includes
- Dwelling: the house itself, including attached structures.
- Other structures: detached garages, fences and sheds.
- Personal property: furniture, clothing, electronics and more.
- Loss of use: temporary living costs if a covered loss makes your home unlivable.
- Personal liability: legal and medical costs if you're responsible for someone else's injury or damage.
Common gaps to check
- Flood. Standard policies generally do not cover flood damage. Flood is usually a separate policy, and monsoon-season flash flooding is worth taking seriously in the Valley.
- Earthquake. Also typically excluded and available as an add-on.
- Wear and tear. Policies cover sudden events, not routine maintenance or aging roofs and plumbing.
- High-value items. Jewelry, art and collectibles often have low sub-limits unless you schedule them separately.
Replacement cost vs. actual cash value
This one detail changes how much a claim pays. Replacement cost pays to replace damaged items with new ones. Actual cash value subtracts depreciation, so an older item pays out much less. It's worth knowing which one your policy uses.
Review it once a year
Renovations, a new car in the garage or a few big purchases can leave your coverage behind. A quick yearly check keeps your limits in step with your life.