Your insurer will compensate you if your residence is damaged by fire, hurricanes, lightning, vandalism, or other covered calamities. Floods, earthquakes, and poor property maintenance are generally not covered, and you may need extra riders if you want that type of coverage. Freestanding garages, sheds, and other structures on the property may require their own coverage, following the same guidelines as the main house. Clothing, furniture, appliances, and the majority of your home’s other contents are covered if they are damaged in an insured disaster. You can also buy “off-premises” coverage, which means you can file a claim for misplaced valuables anywhere in the globe.
However, there may be a limit on how much your insurer will reimburse you. Most insurance carriers, according to the Insurance Information Institute, will cover 50 percent to 70 percent of the amount of insurance you have on your home’s structure. For example, if your residence is insured for $200,000, your personal belongings are covered for up to $140,000.
If you have a lot of expensive items (fine art or antiques, fine jewelry, designer clothes), you may wish to pay extra to have them itemized on your policy, get a rider to cover them, or even buy a separate policy.