Homeowners Insurance, Made Clear

What a homeowners policy covers

• Dwelling — the structure of your home, based on what it would cost to rebuild it, not its market value or what you paid.
• Other structures — detached features like a garage, shed, or fence.
• Personal property — your belongings, usually covered up to a percentage of the dwelling amount.
• Loss of use — extra living costs like a hotel and meals if a covered loss makes your home uninhabitable.
• Personal liability — if you're responsible for someone's injury or you damage someone else's property.
• Medical payments to others — smaller medical costs for a guest hurt on your property, regardless of fault.

Where the gaps hide

• Flood is not covered by a standard policy — it needs a separate flood policy. The same is true for earthquake.
• "Replacement cost" versus "actual cash value" matters: actual cash value pays the depreciated worth of an item, while replacement cost pays to replace it at today's prices.
• Setting dwelling coverage to your home's market value instead of its rebuild cost can leave you underinsured after a total loss.

How to think about it

Your dwelling limit should reflect what it would cost to rebuild your home today; your personal-property limit should reflect what you actually own; and your liability limit should reflect the assets you'd need to protect. Endorsements — like water backup or scheduled coverage for jewelry and valuables — fill common gaps. This is general education, not advice for your specific home; run your situation through Sage AI, and a licensed agent can confirm before you bind.

In Massachusetts

In coastal areas, policies may carry a separate wind or hurricane deductible, and homes in flood-prone zones will need a separate flood policy.