Chelsey Tucker graduated with a Bachelor of History degree from Metropolitan State University in 2019. She now writes about insurance with her specialty being life insurance and has been quoted on Help Smart Phone and MEL Magazine.

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Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years. He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent Daniel Walker

UPDATED: Apr 3, 2022

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Homeowners Insurance Policy

How do you know what the parts of a home insurance policy are? It’s important to know what’s covered under homeowners insurance. While state law sets the sections and the minimum coverage amounts, there are things that are common to every policy.

It’s important to clearly understand what you’re looking and review your existing policy or compare quotes on a new policy to make sure you’re not underinsured.

In fact, each homeowners policy has at least these three following parts. Read on to learn the 3 major parts of every home insurance policy and then to compare homeowners insurance policies with price quotes from many top insurance providers then just enter your zip code above!

Part One: Dwelling

Part one covers the dwelling. This section of a homeowners policy protects against events or accidents that might damage a house. This coverage is specific to the home you live in i.e the insured premises. It can also cover things attached to your home such as garages and decks.

Damage from a fire, for example, can be extensive. Cleaning experts may spend days removing smoke taint from a home.

Repairing damage from the fire, and the water used to put out the fire, is expensive. The dwelling section of the policy addresses such an expense up to the limits you purchased.

Sometimes a robbery causes damage. What if doors or windows are broken so thieves can get in and out of your home? Once your deductible has been covered a homeowners policy steps in to cover the additional cost. Again the focus of this part of the policy is on the building or dwelling.

All in all, this coverage pays for repairing or rebuilding your home if it’s damaged or destroyed by a named or non-excluded peril. Named/excluded perils vary depending on the nature of the dwelling and where it’s located.

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Part Two: Personal Property

The second section of the homeowners insurance policy is designed to protect personal belongings. Furniture, clothing, and even pots and pans are covered up to the limits of the policy. How would you feel if you the things you love or everything you use on a daily basis was destroyed? Personal property insurance is there to help you replace belongings if this happens to you.

If your things are damaged by a covered peril or stolen, this coverage will pay for repairing or replacing it.

Personal property coverage can be customized in great detail for your needs. How much coverage you need is an important factor in getting the right policy. As previously mentioned, the basic amount of coverage is set by state regulations.

If you have items of higher than typical value they may need additional insurance. For example you collected any art pieces, antiques or things that would be hard to replace, the basic coverage in a policy needs to be increased to meet your needs.

A typical addition is called a schedule and documents the item(s) and value(s) in detail so you can be sure your priceless things are protected from accident and theft. Peace of mind happens by combining regular coverage in your policy with additions for your unique belongings. This is the kind of service and assistance you want from a professional agent.

Many homeowners today have roommates. In today’s economy lots of people are making changes to make things work. Whether you have an income apartment in your home or rent rooms to decrease your cost, these individuals need to have their own policy. A renter of any sort is not covered on your homeowner’s policy.

That’s exactly why renter’s insurance is available. So make sure your renters have separate insurance coverage. Renter’s insurance offers the same components as a homeowners policy, but not ownership in the building.

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Part Three: Liability

Liability coverage is another part of a homeowners policy. Liability insurance is designed to insulate you from the legal impact of accidents and unexpected events. Liability coverage is a huge advantage in a world with plenty of lawyers and the legal exposure that comes with simply owning a home. Liability is most easily understood as your responsibility to others (click here to learn what personal liability coverage in home insurance covers).

According to the law you have a responsibility to the people who come on to your property. Your responsibility is to maintain your home and lot in a manner that is safe for visitors. The highest level of responsibility extends to those you invite to your home. No one wants accidents to happen. Maybe a child guest falls unexpectedly or someone trips over something that is out of place. Work with an agent who can assess your needs. Property liability coverage means you don’t have to worry about your responsibility to guests in your home in the event of an accident.

Service individuals also visit your home like cable installers or a home cleaning service are some examples. Visitors who earn money by working on your property aren’t guests. They still have the right to expect safety while doing jobs on your property. In case of an accident, liability coverage brings you a great advantage—the insurance company’s highly skilled lawyers to defend against the claim.

Liability coverage protects your long-term potential. In this day of high-dollar court judgments (sometimes for seemingly no apparent reason) your savings, retirement, and potential earnings could be at risk. This is the kind of situation no one wants to experience. And you can be sure that having a trusted agent and company to stand with you is literally priceless.

Additional coverage

Insurance companies offer many different types of additional coverage. Therefore, you should speak with an insurance agent to learn about your options depending on your situation and location. Sometimes, it might be a better idea to purchase an umbrella policy or separate policies. Moreover, your policy might provide additional liability as well.

You want the best coverage for your money. That’s why it’s important to compare prices and how much insurance you can get for your dwelling, personal property and liability for your premium. Don’t wait until an accident happens to find out you’re paying too much for too little. Get home insurance rate quotes today!