Whether you’re considering purchasing a home for the first time or are a homeowner with a problem, it’s important to know what your homeowners insurance may or may not cover. The problem is that not all insurance plans are the same. The type of plan you have depends on the insurance company you go with, the cost of the plan, and the amount of coverage that’s provided in case of an incident. In general, the options that cost more have more coverage, and the options that are cheaper cover less damage.

Most insurance plans are based on an HO-3 plan, which cover basic damage to the home, but specifically exclude some issues. Damage due to fires, earthquakes, and floods may be excluded from your specific insurance plan. For these issues, you need to have instance-specific insurance in advance in order to be covered. Some insurance plans are based on the HO-2 and HO-1 options, which offer less coverage for less cost. A general HO-3 plan will usually cover damage to both people and property that arises from a vast number of causes. These generally include storms and weather damage, which includes damage from rain, lightning, or wind. Additionally, most plans cover plumbing or electrical issues, falling objects, air conditioning and heating problems, and any damage from aircraft. Depending on what caused it, explosions can also be covered. These plans also generally include intentional damage like theft or vandalism, as well as rioting or disorder damage to the home, possessions, and people.

Of course, when your home or property has been damaged, you need to know what ‘coverage’ entails. As far as structural damage, it’s usually relevant to the cost of repairs or the value of the structure in today’s dollars. This means that if the value of your home drops, the amount of compensation for a lost home can be lower. There may be limits on items like jewelry or cash, which might be covered if you purchase additional supplemental coverage. Generally, depreciation is a big part of the determination for compensation on items within the home. If you pay $1000 for a television that has a used resale value of only $250, you’ll only be compensated $250 if the television is broken or stolen. It’s very valuable to anticipate these specifics before it’s time to file a claim.