Exploring homeowners insurance: what’s covered, what’s not, and why it’s important.

Consider the unexpected events that can turn your world upside down—a kitchen fire, a burst pipe, or a severe storm. These scenarios highlight why homeowners insurance is more than just a financial safety net; it's a lifeline. Homeowners insurance helps you recover and return to normalcy.

At Oakwood Mutual, we believe in safeguarding your peace of mind. Our policies are designed to cover a wide range of potential damages, ensuring that when life throws a curveball, you’re prepared and protected.

Why Homeowners Insurance is Important

Insurance not only helps cover the costs of repairing or rebuilding your home but also protects your personal belongings and offers liability coverage if someone is injured on your property.

Mortgage lenders often require homeowners insurance, making it necessary for homeownership. It protects both your investment and the lender's financial interests.

Financial Protection

A fire, storm, or another disaster could leave your home damaged or even uninhabitable. Without homeowners insurance, the financial burden of repairs or rebuilding can be overwhelming.

Legal Requirements

For many, buying a home involves securing a mortgage. Most mortgage lenders require homeowners insurance as a condition of the loan.

This requirement protects the lender's investment in your property, ensuring that if disaster strikes, there are funds available to repair or rebuild.

Peace of Mind

One of the most significant benefits of homeowners insurance is the peace of mind it provides. Knowing that your home and belongings are protected against unforeseen events allows you to live without constant worry.

What’s Covered by a Standard Homeowners Policy

Dwelling: Your Home

Your home is likely your most significant investment and a standard homeowners policy is designed to protect it. This coverage includes the structure of your house—walls, roof, floors, and built-in appliances.

Personal Property: Your Stuff

Beyond the physical structure of your home, a homeowners policy also covers your personal belongings. This includes furniture, clothing, electronics, and other items that make your house a home.

Liability Coverage

Accidents happen, and sometimes, they happen on your property. Liability coverage, which Oakwood Mutual offers through Grinnell Mutual, protects you if someone is injured on your property or if you accidentally damage someone else's property.

Additional Living Expenses

A standard homeowners policy will also cover additional living expenses (ALE) if a covered disaster renders your home uninhabitable. This means your policy will help pay for temporary housing, meals, and other essential costs while your home is being repaired or rebuilt. 

What’s NOT Covered by a Standard Homeowners Policy

While a standard homeowners policy provides extensive coverage, there are certain things it typically does not cover. Understanding these exclusions is crucial to ensure you're fully protected. Here are some key areas that are generally not covered by a standard policy:

Intentional Harm/Injury

Homeowners insurance is designed to cover accidental and unforeseen events. It does not provide coverage for intentional harm or injury. If you or a family member intentionally cause damage to your property or injure someone, your policy will not cover the resulting costs.

Businesses in the Home

If you run a business out of your home, your standard homeowners policy may not cover business-related risks. To protect your home-based business, you'll need to look into additional business insurance or add a home business endorsement to your policy.

Natural Disasters: Earthquakes and Floods

Standard homeowners insurance typically does not cover damage caused by earthquakes or floods. These natural disasters require separate policies. Without these additional policies, you would be responsible for all repair and replacement costs if an earthquake or flood damages your home.

Service Lines and Equipment Breakdown

Standard policies usually don't cover damage to service lines (like water, sewer, or electrical lines) that connect your home to public utilities. They also don't cover breakdowns of essential home systems and appliances. However, you can add endorsements to your policy to cover these areas.

Explore Oakwood Homeowners

Homeowners insurance is crucial to homeownership, offering financial protection, legal compliance, and peace of mind. While standard policies provide substantial coverage, understanding their limits is vital to ensure comprehensive protection.

Oakwood Mutual's homeowners insurance product meets standard coverage needs and offers extended options to cover gaps, providing a tailored solution for home protection.

Find an Oakwood Agent to explore our homeowners insurance options and find the right coverage to fit your needs. With Oakwood Mutual, you can rest easy knowing you're protected by a trusted insurer committed to you.