Homeowners Insurance 101

Got homeowners insurance questions? We’ve got answers! Get the scoop on your homeowners insurance policy—from coverage, to costs, and more.
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Types of Homeowners Insurance

There's no single type of homeowners insurance. From HO3 to HO6 and beyond, we'll take a look at the options.

How Much Does Homeowners Insurance Cost?

We break down homeowner insurance rates and the factors that affect them.

How to Buy Affordable Home Insurance Online

Because not all insurance policies are created equal.

What Homeowners Insurance Doesn’t Cover

What you don't know, might hurt you.

Homeowners vs. Renters Insurance: What's the Difference?

Graduating from renting to owning? Here's what you can expect

Landlord Insurance

Landlord insurance is a policy that covers property owners renting out their homes, condos, or apartments.

Reconstruction Costs and Your Homeowners Insurance

There are three major trends that might be causing the Reconstruction Cost (RC) of your home to climb.

Buried Utility Coverage

A little something extra to protect those underground utility lines.

Who Does Your Insurance Policy Cover?

Your spouse is covered. But what about that roommate?

Does Homeowners Insurance Cover Dog Bites?

If your pet injures someone else, it may be covered by the liability clause in your homeowners insurance policy.

Homeowners Insurance Add-Ons You Should Know About

Want to be fully covered? Consider these policy additions.

Reconstruction Cost Estimate (RCE)

A Reconstruction Cost Estimate (RCE) is a figure that approximates the cost of rebuilding your home in the case it gets completely destroyed.

Recoverable Depreciation

Recoverable depreciation is the amount of decreased value you can claim on your property in an insurance policy. 

Equipment Breakdown Coverage

Equipment Breakdown Coverage (EBC) is an endorsement that you can purchase to complement and enhance your homeowners or renters insurance.

Insurance Adjuster

An insurance adjuster is a person who investigates claims to determine how much (or if) your insurer should pay for a damage or loss.

Personal Liability Coverage

Personal liability coverage financially protects you against accidental bodily injury or property damage to other people.

Blanket Insurance

Blanket insurance is single property insurance that offers coverage for multiple properties at various locations under one policy.

HO6 Insurance

HO6 insurance, or condo insurance, is a type of homeowner insurance policy that protects condominium units specifically.

Co-op Insurance

Let's take a close look at an HO6 policy.

Loss Assessment Coverage

Loss assessment coverage is added protection if damage to your condo exceeds your HOA insurance policy limits.

Proof of Insurance

Proof of insurance is a document that shows your landlord, lender, or other individual that you actually have renters or home insurance.

Other Structures Coverage

Other structures coverage protects things in your yard not created by mother nature, like your driveway, fence, shed, or detached garage.

Insurable Interest

Insurable interest means having a financial stake in a person, a home, or a piece of personal property.

Subrogation

Subrogation is when your insurer steps in to get money from a third party that caused damages to your property.

Uninsurable Peril

An uninsurable peril is an event that your insurance policy won’t cover if it results in damages or losses to your property.

Vandalism Coverage

Vandalism refers to intentional damage caused by someone else to your place or your stuff without your consent.

Property and Casualty Insurance

This type of insurance will protect things you own (like your home or your belongings) and also includes liability coverage.

Theft Coverage

Your personal property is covered at home and basically anywhere else on most renters and homeowners policies.

Negligence

Negligence is when when someone covered by your policy acts in a reckless or unreasonable way, which results in damages or losses.

Occurrence

Another word for an accident - in insurance, occurrence refers to bodily injury or property damage that happens when your policy is active.

Open Perils

Open perils is coverage for damages to your property - if something’s not explicitly excluded, it’s covered.

Personal Property Coverage

Personal property is insurance lingo for “your stuff” - it’s also known as Coverage C on renters and homeowners insurance policies.

Replacement Cost

Think of replacement cost as the ‘Amazon’ price for how your insurance company will value stolen or damaged stuff.

HO5 Policy

An HO5 policy is a type of insurance policy that provides broader protection and higher coverage limits than your typical homeowners policy.

Loss of Use Coverage

Loss of use is a type of insurance coverage that helps with temporary living expenses if your place becomes uninhabitable due to a named peril.

Limit of Liability

Limit of liability refers to the max amount of money your insurer is on the hook for if something bad happens to you, your stuff, or your property.

Additional Insured

An additional insured is a person you add to your policy because they live with you and/or have a financial interest in your place.

Bodily Injury Claims

Bodily injury (and bodily injury claims) is a term describing physical harm to others caused by you, or anyone else covered on your insurance policy, including your pets!

Date of Issue

Date of issue in insurance refers to the actual date on which your policy was drawn up (but not when your insurance becomes active).

Declarations Page

A declarations page is a summary of your insurance policy that includes important details like coverage amounts, deductible, and who’s covered.

Effective Date

An effective date refers to the exact date and time when your insurance policy will officially become active.

Insurance Endorsement

In insurance, an endorsement can be an exclusion, addition, or any other type of change to the original terms of your insurance policy.

Fire Insurance

Fire insurance provides extra protection, on top of what your insurance policy would normally cover, in the event of losses or damages to your property.

Actual Cash Value

Think of actual cash value as the eBay price of used items.

Trampolines and Your Insurance Policy, Explained

Jump around, jump around—but will your quote be turned down?

The Lowdown on Roof Leaks in Your Homeowners Insurance Policy

That dreaded drip, drip, drip—and how your policy can help.

Your Homeowners Declarations Page: What You Need to Know

It’s your insurance policy, simplified.

Extra Coverage Documentation Made Simple

Scheduled property coverage (or Extra Coverage, as we call it at Lemonade) requires some simple documentation. We break it down for you here.

5 Steps to Switching Your Homeowners Insurance Company

Because you deserve to be treated right.

What You Might Be Getting Wrong About Your Homeowners Insurance

We clear up some of the most common misunderstandings around homeowners insurance, so that you can sail into the future with confidence.

The Lowdown on Liability Coverage

Your complete guide to liability coverage: How it works, what it covers, and how to file a claim with Lemonade.

How to Shop for Homeowners Insurance

Everything you need to know about shopping for homeowners insurance.

Fire Damage: Here’s What You Need to Know

If a fire occurs in your home, here's what to do—and how to file a claim.

Bicycle Insurance, Explained

Great news: Bike insurance is way less complicated than you’d expect! Bad news: Bike theft is super common.

How Much Homeowners Insurance Do I Need?

When it comes to homeowners insurance, how much coverage do you really need?

Do I Actually Need Homeowners Insurance?

Spoiler: Homeowners insurance is not required by law, but it's totally essential.

Insurance Scores, Explained

Your insurance score is a bit different than your credit score. We'll help you understand the difference, and why it matters.

Does Homeowners Insurance Cover Fences?

Here’s how to best protect your fence.

Home Warranty

A home warranty policy offers an additional layer of protection from the cost of potential home repairs and appliance breakdowns.

Dwelling Coverage

Dwelling coverage is the amount noted in your homeowners insurance policy that protects you from damages to your place (your home and everything attached to it, such as a garage, chimney, etc.)

Moral Hazard

A moral hazard is a situation in which a person with insurance takes greater risks than they normally would without insurance, because they know their insurer will foot the bill if something bad happens.

Named Insured

Named insured are everyone covered under an insurance policy, including the policyholder and the people they’re related to living at their place.

Named Perils

Named perils are specific damages or losses listed in your policy if any of these ruin your property, you’ll be covered.

HO3 Policy

An HO3 policy is the most common homeowners insurance policy, protecting you, your family, and your property against various types of damages.

What Is Homeowners Insurance?

Get your home covered, from roof to shed.

Property Insurance

Property insurance refers to a series of policies that provide coverage for structures, property, and liability.

Does Homeowners Insurance Cover Electronics?

The lowdown on insurance for electronic devices.

Hazard Insurance

Part of your homeowners insurance policy, hazard insurance protects the structure of your home against “hazards” like fire, hail, theft, etc.

The Ultimate Lemonade Renters & Homeowners FAQ

You've got questions, we've got answers.

Does Homeowners Insurance Cover Termite Damage?

Don't let these critters eat away at your biggest investment.

What Does Homeowners Insurance Cover?

Mold? Windstorm damage? Flooding? Let's spell out exactly what you're protected against.

Homeowners Insurance, Explained

Most people know they need homeowners insurance—but they don't know what it actually covers.

Please Note: These definitions don’t alter the terms, conditions, exclusions, or limitations of policies issued by Lemonade. They are intended for educational purposes only - they’re not meant to be used in lieu of professional legal or financial advice. We’ll do our best to keep them updated, but they may not always reflect current industry developments. Feel free to use the terms with attribution (friends don’t let friends plagiarize!)

Property and casualty insurance provided by Lemonade Insurance Company, 5 Crosby St., 3rd floor, New York, NY 10013. Life Insurance provided by North American Company for Life and Health Insurance®, Administrative Office, One Sammons Plaza, Sioux Falls, SD 57193.

Lemonade Insurance Agency, LLC (LIA) is acting as the agent of Lemonade Insurance Company and Lemonade Life Insurance Agency, LLC (LLIA) is acting as the agent of North American Company for Life and Health Insurance®. Both LIA and LLIA receive compensation based on the premiums for the insurance policies each sells. Further information is available upon request.

LLIA is a sub-producer of Bestow Agency, LLC. Life insurance quotes are provided by Bestow Agency, LLC dba Bestow Insurance Services in CA, who is the licensed agent. Term Life insurance policies are issued on North American Company for Life and Health Insurance® policy form LS181 and LS182, or state version including all applicable endorsements and riders. Products or issue ages may not be available in all jurisdictions. Limitations or restrictions may apply. Not available in New York. Our application asks about your lifestyle and health; your answers allow us to save you time and avoid offline medical exams.