Protecting your home starts with understanding your policy

Owning a home is a major milestone, and it can be both exciting and intimidating. Whether you're a first-time homeowner or you've owned a home for years, protecting that investment is important. Understanding your insurance options can help you choose coverage that fits your needs and budget.

Knowing what your policy covers, and what it doesn't, can help you avoid costly surprises. Standard home insurance policies include several coverages for common perils, each with limits you can typically adjust. You may also be able to add coverage for certain risks that may not be included in a standard policy, such as earthquakes or floods.

What does homeowners insurance cover?
Homeowners insurance typically provides a broad set of protections for your home, your belongings and your personal liability. Coverage and limits vary by policy, so it's important to understand what you have and what you may need.

Most policies include:

• Dwelling coverage to help protect your home's structure, such as the roof, walls, floors, siding and windows.
• Personal property coverage to help repair or replace belongings, from furniture and clothing to certain valuables such as watches and jewelry.
• Other structures coverage to help protect structures on your property that are not attached to your home, such as detached garages, sheds, fences and pools.
• Loss of use coverage to help pay for additional living expenses, such as food and temporary housing, if a covered event leaves your home uninhabitable.
• Liability coverage to help protect you if someone is injured on your property.

Deductibles are the dollar amount or percentage you pay out of pocket before insurance pays its portion of a covered loss. Your agency owner can help you compare options and help you choose what fits your budget.

What does homeowners insurance not cover?
It's important to know that a standard home policy does not usually cover every type of loss.

While this list is not exhaustive, many policies do not typically cover:

• Earthquakes
• Equipment and home appliance breakdown
• Floods
• Hidden water damage
• Service line breakdown
• Sewer/septic backup and sump overflow damages

Some items listed above may be available as optional add-on coverage you can purchase and add to your policy. Talk to your agency owner to see what makes sense for you and your budget.

Talk with an agency owner
Your home is an investment. Understanding your coverage and making informed choices can help you avoid costly surprises when you need your policy most.

Keep in mind that as your home changes, your coverage should, too. Updates such as a new roof, a finished basement, an updated room or a new deck can change your coverage needs. Since most homeowners policies renew annually, renewal is a good time to check in with your agency owner to review your home's value, your deductible and what is and isn't covered.

Choosing the right homeowners policy for your needs and budget doesn't have to feel overwhelming. Your local American Family Insurance agency owner can explain your options and help protect what matters most, so you feel confident in your coverage and can keep pursuing your dreams.

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About American Family Insurance
American Family Insurance, based in Madison, Wis., has been serving customers since 1927. We inspire, protect and restore dreams through our insurance products, exceptional service from our agency owners and employees, community investments and creative partnerships. American Family Insurance is the nation's 12th-largest property/casualty insurance company, ranking No. 226 on the Fortune 500 list. American Family has a current 'a+' credit rating through AM Best, and has distinction as a "Standing the Test of Time" company, which is represented by having an AM Best financial strength rating of 'A' or better for at least 75 years. The company offers American Family-brand products through a network of exclusive agency owners as well as nationwide through key strategic partnerships. American Family Insurance also includes Homesite and Main Street America. The company has approximately 10,500 employees nationwide.