The housing market is constantly fluctuating and so is home insurance. The different types of homeowners insurance and available rates are ever-changing, which makes re-evaluating what and how much coverage you need essential to saving money and keeping your home protected. 

To help you stay informed, we broke down some of the different types of home insurance and what they cover.


This type of coverage is for repairs or rebuilding your home when or if damage occurs. This damage will need to fall under the coverage you choose— this can be fire, windstorm, hail, lightning, or, in some cases, vandalism.

To calculate this type of homeowners insurance, you’ll need to start with the estimated cost to rebuild your house (this is not your market value). Review your mortgage or talk with your lender about a required dwelling coverage (limits and deductibles).

Other Structures

This type of homeowners insurance covers anything outside of your home. This includes detached garages, sheds, and fences. Look into what is already covered with your existing coverage. Most insurance policies cover some portion of structures outside your home.

Personal Property

This coverage is pretty straightforward. Insurance will cover personal items like furniture, clothing, jewelry, etc. if they are damaged or destroyed by issues in your policy.

This type of homeowner insurance is entirely up to you and your preference. Ask yourself if you want the actual cash value coverage (generally included in your homeowner’s policy) or optional replacement cost coverage.

Loss of Use

This type of homeowners coverage is also called Additional Living Expenses (ALE) or Coverage D. It covers any expenses that occur during home repair (if the damage was under-covered by the policy).

A list of common additional living expenses that are typically covered under loss of use insurance include:

  • Cost of temporary housing, such as a hotel or a motel
  • Taking public transportation
  • Boarding a pet
  • Additional food expenses

Personal Liability

Suppose the members of your household are responsible for causing injury or damage to property or others. In that case, this particular homeowners insurance will protect you or the member of your house.

Ask your insurance broker what the minimum policy coverage is, and then adjust to your personal preference.

Medical Payments

If a guest receives a minor injury on your property and requires medical attention, this specific coverage helps cover their medical payments up to a certain amount. Limits in a standard policy are typically set at $1,000 to $5,000. That means if you have $5,000 in coverage and a guest’s medical bills exceed that amount, you’ll pay the difference out of pocket.

Here are a few examples of the types of expenses that can be covered:

  • Medical
  • Surgical
  • X-ray
  • Dental
  • Ambulance
  • Hospital

Talk with your local insurance broker about the policy limits and the minimum amount of coverage they offer per person.

If you are looking for additional “add-on” coverages to these plans, a few standard types include:

  • Additional Replacement Cost Coverage
  • Personal Property Coverage Replacement
  • Special Personal Property Coverage

Staying connected to a local insurance broker will help you explore your options and find the right home insurance at the best price.

Your local insurance brokers at Beimdiek take these policies and coverages seriously. We are honored to join you in this process and look forward to getting you protected and saving you money.

Need help finding the best homeowners insurance rates?

Our local insurance experts are here to help you.


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