When disaster strikes—be it water damage, fire, or mold infestation—homeowners often find themselves scrambling to understand what their insurance actually covers. At Trust AVR, we’ve seen countless clients struggle with insurance confusion at the worst possible time. This blog will help you unpack the essentials of your homeowner’s insurance policy so you’re better prepared for any unexpected property damage.
What Is Homeowner’s Insurance?
Homeowner’s insurance is a policy that provides financial protection against losses due to disasters, theft, and accidents. It typically covers the structure of your home, your personal belongings, liability protection, and additional living expenses if you're displaced due to damage.
Common Coverage Areas
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Dwelling Coverage
This protects the structure of your home from risks like fire, storms, or sudden water damage (e.g., burst pipes—not gradual leaks). -
Personal Property
Covers belongings inside your home, such as furniture, electronics, and clothing, usually up to a percentage of your dwelling coverage. -
Liability Protection
If someone is injured on your property, liability coverage helps pay legal fees and damages. -
Loss of Use (ALE - Additional Living Expenses)
If your home is uninhabitable after a covered disaster, this pays for temporary living costs such as hotel stays, meals, and transportation.
What’s Not Covered?
Policies usually exclude:
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Gradual wear and tear
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Floods (separate policy required)
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Earthquakes (also separate)
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Sewer backups unless additional coverage is purchased
Understanding these exclusions is crucial so you're not caught off guard.
Filing a Claim the Right Way
When damage occurs:
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Take photos immediately
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Prevent further damage if it’s safe
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Contact your insurance company ASAP
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Keep all receipts and records of repairs
At Trust AVR, we assist clients through every step of the claims process, helping them document damage and communicate with adjusters effectively.