Who Is Covered under Your Homeowners Policy?
To understand who is covered under your homeowners policy, it's helpful first to understand what homeowners insurance covers. Basically, homeowners insurance covers your home and other physical structures on the property (property insurance), your personal belongings (personal property insurance), and liability resulting from bodily injury or property damage suffered by others in connection with your property (liability insurance). Your homeowners policy protects more than just the owner of the house. But depending on who you're talking about, they may not be covered in all three areas.
Named insured Every homeowners policy lists a named insured. This person is the individual primarily insured under the policy and is usually the same person named on the deed as the owner (if the house is jointly owned, both people should be listed as the named insureds). The named insured receives the most extensive coverage under the homeowners policy--property insurance, personal property insurance, and liability insurance. If something happens to your home (e.g., a storm shatters your windows, a car crashes through your fence), you'll be the one to make the claim with the insurance company.
Spouse If your spouse resides in the home, he or she is covered by personal property and liability insurance, even if he or she isn't identified in the policy.
Children and other residents Any individuals who live in the home are also covered by personal property and liability insurance if they are related to you (e.g., your children, an aging parent) or if they are under 21 years of age and in the care of any member of your family. So, if your daughter moves back in with you after college, she would be covered for personal property and liability insurance, even if she's over age 21, but a nonrelative would not.
Employees Any employees you may have, such as housekeepers, au pairs, or landscapers, are covered by your policy's personal property insurance.
Guests and other visitors Your guests and other invited visitors (as opposed to trespassers) are covered by personal property insurance, provided you contact your insurance company at the time you purchase the policy to request this coverage.
Tenants Although your homeowners policy covers many people, there is one group who generally isn't covered--tenants. To protect their belongings in case your home is damaged, renters will need to get a separate renters insurance policy. A renters policy can also provide them with liability protection if someone suffers an injury or property damage due to their negligence.
If you have an in-law apartment, determining whether your tenant's personal belongings will be covered under your homeowners policy is a bit trickier. For some insurance companies, a private entrance is the deciding factor on whether a separate renters policy will be necessary. For others, the deciding factor is whether the person occupying the in-law apartment is a relative. Make sure you confirm your coverage with your insurance agent before you have to file a claim.
If you own a home and are renting it out, keep in mind that your standard homeowners policy may not be appropriate for you because (1) you don't need to insure the contents of the house (unless you're offering it fully furnished), (2) you'll probably need more liability insurance, and (3) you may want to protect yourself against the loss of rental income. If so, you might be interested in an insurance policy designed specifically for rental property.
FAQs
Homeowners insurance typically covers your dwelling, other structures on your property, personal property, personal liability, medical payments to others, and loss of use costs. Payment for damages depends on if a covered peril caused the loss and the homeowners insurance coverage limits on your policy.
Who is insured under a homeowners policy? ›
As we mentioned above, the owner of the policy is a 'named insured,' along with anyone else living at their place and related to them by blood, marriage, or adoption.
Who is not eligible for a homeowners policy? ›
High-Risk Location
It could be that your home is located in a neighborhood that experiences a lot of crime. If so, an insurance company will be wary of the fact that you may incur property damage from vandalism or theft. If you live too far away from a fire station or fire hydrant, that could also disqualify you.
What does a homeowners policy not cover? ›
Homeowners insurance doesn't cover floods, earthquakes, typical wear and tear, and damage due to insufficient maintenance. You can usually add flood and earthquake coverage to your policy for an additional fee, but wear and tear and damage from a lack of maintenance are considered preventable.
Which of the following are not covered by homeowners insurance? ›
Standard homeowners insurance does NOT cover damage caused by flooding, earthquakes, termites, mold, or normal wear and tear.
Does it matter whose name is on homeowners insurance? ›
Homeowners insurance is there to protect the property and your wallet from facing serious damage after a covered incident. However, for this policy to even be effective, the policy must have the name of the current owners, whether it is yours or your children's.
Should my girlfriend be on my homeowners insurance? ›
Is my boyfriend/girlfriend covered by my home insurance? No. Not unless you are both listed on the deed, or unless you purchase an endorsem*nt for Other Members coverage (see below). Otherwise, this person would not have property coverage or personal liability coverage.
Does home insurance cover everyone? ›
The insurance covers your own possessions and those of close family members living with you. It may not cover the possessions of anyone staying with you temporarily.
What is excluded in a homeowners policy? ›
Important: Read exclusions in your insurance contract. Earthquake, flood, mold, earth movement, and “wear and tear” are some of the perils that are usually excluded. When an insurer writes your homeowners coverage, the insurer is legally obligated to offer you earthquake coverage for an additional premium.
Is it hard to get homeowners insurance after being dropped? ›
If your insurer nonrenewed or cancelled your policy because your house needs repairs or you filed too many claims, you may have difficulty finding an insurance company willing to insure your home.
Homeowners insurance policies generally cover destruction and damage to a residence's interior and exterior, the loss or theft of possessions, and personal liability for harm to others. Three basic levels of coverage exist: actual cash value, replacement cost, and extended replacement cost/value.
What are the four main things protected under homeowners insurance? ›
There are four standard areas covered by your regular homeowner's policy.
- Your home's physical structure.
- Your personal belongings inside the home.
- Liability protection.
- Coverage for additional living expenses.
Dwelling coverage only applies to structures attached to your main residence, meaning that detached garages, sheds, barns, unattached guest homes, fences, or any other detached structures are typically not covered under dwelling coverage.
What not to say to home insurance? ›
Avoid admitting fault or underestimating damages as this might lead to lower compensation or even denial of your claim. Honesty is crucial when dealing with an insurance adjuster, so avoid providing false information which can lead to serious consequences like claim denial or legal repercussions.
Who is not an insured on a homeowners policy? ›
Although your homeowners policy covers many people, there is one group who generally isn't covered--tenants. To protect their belongings in case your home is damaged, renters will need to get a separate renters insurance policy.
What are examples of commonly covered and not covered homeowners insurance? ›
Damage or destruction due to vandalism, fire and certain natural disasters are all usually covered. So is your liability if someone is injured on your property. Certain catastrophes, like flooding or earthquakes, are generally not covered by basic homeowners policies and require specialized insurance.
Is a spouse automatically a named insured? ›
If a house or car is jointly owned, both people may be listed as a named insured. If your spouse resides in the home, he or she is automatically covered under your homeowners and auto policy, even if he or she is not identified in the policy.
Do household members have to be listed on your insurance policy? ›
Many insurers, including Progressive, require you to add a spouse to your car insurance policy if you're both living in the same household (unless your state gives you the option to exclude your spouse). Adding your spouse to your policy ensures that you're both covered in the event of an accident.
Is the policy owner the same as the insured? ›
The policyholder or policy owner is an individual who plans and buys a policy. The individual who gets life coverage against risks as per the policy is an insured person. Only if a policyholder is an insured person, the beneficiary will get the entire sum assured on the death of that insured person (policyholder).
Is named insured the same as policyholder? ›
The named insured is the person or entity who owns the policy, and whose name appears on the first page of the policy. They may also be referred to as the policyholder or the primary insured. The named insured owns the policy and is entitled to all of the coverage provided by the policy.
