What's Covered by a Homeowner's Policy?

There are several different classes of homeowner's policies in terms of the types of risks that are covered. The most common type of homeowner's policy in use today (known as "comprehensive coverage" or "HO-3" in the insurance industry) covers a variety of risks beyond what you might expect. It is this general type of policy that we will discuss here. (Renter's insurance is closely related to homeowner's insurance.)

Here are some of the major kinds of risks that are covered by a comprehensive coverage homeowner's policy:

• damage to home and personal property caused by fire, lightning, wind, or storm damage
• medical payments for occupants for injuries caused by fire, lightning, wind, or storm damage
• medical and legal liabilities to persons injured by accident while in the home
• loss or theft of personal property, even if not in your home, with some restrictions on things like jewelry or laptop computers
• liability to others for accidental damage to their property, even if not in your home
• liability for unintentional personal injury to others caused by the homeowner or his or her family
• liability for intentional personal injury to others caused by the homeowner's children who are below a specified age
• liability to others hurt because of your participation in a sporting event (for example, while playing golf, you accidentally strike someone with a golf ball)
• liability for damage or injury caused by pets (but damage caused by exotic pets -- such as a cheetah -- will not be covered)
• damage caused by vandalism, riot or civil unrest
• damage caused by falling objects (such as tree limbs)