Common Misconceptions About What Home Insurance Covers

A house with a porch and lawn.

There are a lot of myths out there about what home insurance covers and what it doesn’t. This article will dispel some of the most common misconceptions about home insurance coverage. Keep reading to learn more.

What is home insurance?


Home insurance is a type of insurance that provides coverage for damages or loss to a person’s home. Home insurance policies typically have a range of coverages, such as damage to the house, its contents, loss of use, personal liability, and medical payments. Some home insurance policies also provide coverage for injuries that occur on the property, such as slips and falls. Insurance companies typically offer home insurance as a package policy. This means the policy will include a combination of coverages, such as damage to the home and its contents, loss of use, and personal liability.

71% of Homeowners are unaware that home insurance doesn’t pay for damage to vehicles. Vehicles are typically not covered under a homeowners insurance policy, regardless of whether they are parked in the driveway or garage. If you want coverage for your car, you will need to purchase an auto policy.

Damage to Property

An empty room with walls that have been ripped down, debunking common misconceptions about what home insurance covers.

Home insurance policies vary by state but typically do not cover damage to a home caused by a specific hazard to that area. For example, if your home is in an area prone to wildfires, your policy may not cover damage from a wildfire. This is because the insurer considers the risk of fire to be too high in that area and does not want to assume liability for damages. Another example includes a hurricane that might cause extensive damage to a home in Florida but would not be as likely to occur in another state. Some specific hazards specific to certain states are tornadoes in states like Oklahoma and Texas, earthquakes in California, and wildfires in states like California and Colorado. There are exceptions to this rule, so it is essential to read your policy carefully or contact your agent if you have any questions.

Temporary Housing

When you buy home insurance, one of the things you hope to protect is your ability to have a place to stay if your home is damaged or destroyed. However, there are some misconceptions about what home insurance covers. One of these is that it will pay for temporary housing if your home is damaged in a disaster. Home insurance policies vary, but most will not cover the cost of temporary housing. This is because the primary purpose of home insurance is to help you rebuild or repair your home after a disaster, not to help you find somewhere else to live while it’s being repaired.

There are some exceptions, such as if you have special coverage for temporary housing expenses. But in general, you will need to find another way to pay for temporary housing if your home is damaged.

Accidental Damages

Home insurance policies do not typically cover accidental damage. This means that if something happens in your home and it is not a covered event, your policy will not help you pay for the damages. For example, if you accidentally drop a vase and it shatters, your insurance will not reimburse you for the cost of the vase. However, there are some exceptions to this rule. Some policies may cover certain accidental damages if they are caused by events specifically listed in your policy. It is essential to review your policy carefully to determine what is and is not covered.


Home insurance is a significant investment that provides coverage for damages or losses to a home. While there are many misconceptions about what home insurance covers, it is essential to understand that it usually includes coverage for the structure of the house, its contents, and its liability.

Scroll to Top