Everything you need to know about Homeowners Insurance


Homeowners Insurance is a category of insurance designed to protect you and your home.

Let’s do a reflection together, after a long day at work, when you are arriving from a trip, or even, at the end of a barbecue day at a friend’s house, where do you want to go? HOME!

Our home is our refuge, the place where we recharge our energies, where we deposit our dreams and hopes. It’s probably the biggest investment you’ve ever made or will make, it’s the equity you’ve invested and you’ll still invest a lot of blood, sweat and tears.

Hours of work, years of savings, sacrifices and a lot of anxiety in the name of the dream of owning a home. Have you ever thought if a tragedy happens and everything was in vain? For a low monthly fee you can hire Homeowners Insurance and get that worry out of your head, at least this one! 😉

So, you must already be convinced that you want to protect her, right?

It is very important that you understand what and how each item will be insured, and what will not be or will need specific coverage.

This type of insurance has a few variations and there is always an option that fits your situation. All contracts will come with the following coverage:

  • Home insurance: your property insurance
  • Personal property: insurance for your belongings
  • Personal liability: your legal security.

What are my options?

There are different types of policies for each situation. All liability and personal benefits coverage are identical. However, property coverage may vary according to need.

While standard Homeowners Insurance insures the entire property, there is Homeowners insurance O 6 coverage which is designed for those who live in a building, insuring only what is inside the house.

What does Homeowners Insurance cover?

Your Homeowners Insurance policy is there to ensure the security and maintenance of the life you’ve built for yourself, protecting:

  1. Your home;
  2. Other structures;
  3. Your things;
  4. Your lifestyle;
  5. Your financial health in the event of a lawsuit (liability)

Understand how it works:

1. Your home

  • Construction: walls, floors, roof, windows.
  • Fixed structure: sinks, sanitary ware, built-in cabinets.
  • Construction material: used on the property and located in or near the insured area.

Remembering that renters insurance ( Homeowners Insurance-4 ) will only cover the “stuffing” of the house and apartment insurance ( Homeowners Insurance O-6 ) will cover only the unit, not the whole building.

2. Other structures

Buildings within the property, whether or not attached to the house, stated in the policy. Structures used for commercial purposes and rentals are not covered by this coverage.

3. Personal goods

Protect the goods that are in your home or anywhere in the world! Covers against damage, theft or even loss. That is, if a pipe bursts and damages your television, if your laptop is stolen at the restaurant or if you lose your cell phone on a trip, you are safe!

However, there is still the leap of the cat, this insurance also covers damage to third-party goods, that is, if something happens to the things of a visitor or a domestic worker who is in your house, the insurance will also help you.

Important : To cover items that are outside the home, they must be listed on the policy and the loss will be covered up to 10% of the coverage limit.

This rule does not apply if:

  • Goods in transit during a move have full coverage for 30 days, starting on the 1st day of the move.
  • Goods that are out of the house during home repairs or renovations, also with full coverage during the construction period.

What goods are not included? 

Some items are specifically excluded from coverage:

  • motor vehicles
  • Tenant-owned if you have a room rented to someone outside your family.
  • Property leased to third parties outside the premises of the residence
  • Credit cards
  • pets

4. Your lifestyle

If something happens to your home and it becomes uninhabitable, due to construction, an accident or damage caused by natural phenomena, insurance can save you in three situations:

  • If you live in the property, this coverage will guarantee you temporary housing and may also cover additional expenses with food and transportation so that you can keep your routine as normal as possible.
  • If the property is rented, the policy will cover the loss of the rent.
  • If a civil authority prohibits the insured from using the residence facilities as a result of direct damage to neighboring facilities, the additional living cost or loss of fair value of rent will be covered for up to two weeks.

5. Your financial health in the event of a lawsuit ( liability )

Civil liability or liability insurance protects you from lawsuits in case of personal injury or property damage that can happen inside your home.

It covers everything from attorney fees to medical expenses and bills. Expenses that can go out of your pocket if you don’t have Liability hired, which can create a hole in your budget.

What hazards are covered by Homeowners Insurance?

Coverages usually include:

  • Fire
  • Rays
  • domestic explosions
  • Wind
  • civil commotion
  • Smoke
  • Hail
  • vehicle collision
  • aircraft crashes
  • Volcanic eruption
  • Vandalism
  • Intentionally caused damage
  • Explosion
  • riots
  • Theft

Important to know:

  • Damage to housing caused by a vehicle will only be covered in the case of a vehicle that does not belong to or is not being driven by the insured.
  • Internal damage caused by a windstorm or hail is covered only if wind or hail enters the dwelling through damage. That is, if you forget the window open, you will not receive a refund, but if the storm takes your roof and the rain wets your furniture, then you will receive it.
  • Vessels, outboard motors and related equipment are only covered while fully inside enclosed buildings.
  • Stains caused by smoke from agricultural production or industrial operations are not covered.
  • Losses from vandalism or malicious damage to property on the premises of the residence are not covered if the residence has been unoccupied for 60 consecutive days or more.

What does the standard HO not cover?

Valuables : Very valuable items like jewelry, antiques, collectibles may need additional coverage.

Home Business: If you run a business from your home, certain equipment, inventory and important documents will not be covered under your home insurance. You will need specific insurance to protect your business.

Motor vehicles: even if it is your property, the motor vehicle is not insured even if it is parked in your garage.

However, your belongings inside the car are usually covered, even if they are stolen from inside the car while you are on the street.

Unregistered Items: If you cannot prove ownership of an item or its value, you will not receive a refund. So keep an inventory of your goods, always keep receipts and take photos or videos that record the existence and condition of each thing… Just in case. 

Natural disasters: Floods, erosion and earthquakes are rarely covered by general policies. If you are living in a place where these phenomena are likely to occur, ask for an additional policy.

Learn all about flood insurance and if you want more on the subject, take advantage of the contents of the “ Flood ” category.


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