What a standard homeowners policy actually covers

A standard HO-3 policy is really five coverages bundled together: the structure itself, detached structures like a garage or fence, your belongings, the cost of living elsewhere while the home is unlivable, and personal liability if someone is hurt on your property.

The two exclusions that catch people out are flood and earthquake. Neither is covered by a standard policy anywhere in the US. Flood in particular is misunderstood: damage from rising water is excluded even though damage from a burst pipe generally is not, which is a distinction that only becomes obvious during a claim.

Loss of use is the coverage people forget they have. If a covered loss makes your home unlivable, the policy pays the additional cost of staying somewhere else. It is worth knowing your limit before you need it, because it is usually expressed as a percentage of your dwelling coverage rather than a flat figure.

Where this applies