What does homeowners insurance cover?

I have had homeowners insurance since I have been owning homes. Needless to say it has been for decades. I have had homeowners insurance for any of my rental properties and have been going through the same insurance company for probably 3 decades now. Usually when something happens I would rather pay out of pocket than make a claim. I just recently purchased a home that will be going to a family member of mine some time in the future. The family member paid for a year of homeowners insurance for this home but the insurance is under my name. Just recently the house was robbed. We are still in the process of renovation and the family member thought it would be a good idea to start moving stuff into the garage since we are close to being done. 

So will insurance pay out on all property or just my stuff since the policy is in my name but paid for by the family member. I dont want them to lose everything they have and not be allowed the chance to recover it or is it already too late? I feel horrible if it is too late and I was the one who guided them to do it a certain way and they just followed my guidance. 

Update:

I am the owner of the house. My family member is pretty much just paying me back for the house so I will be signing it over to them once it is paid in full. I wanted to make sure they had insurance on the house and since I am the owner of the house for now I put the insurance under my name but the insurance company marked it as a rental property. Because this house in the end is really going to the family member they paid for the insurance on my name. 

Update 2:

I have my own home and this home once renovated will house my family member and their family. Even now we dont live together.

6 Answers

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  • Willie
    Lv 7
    5 days ago

    It covers the shell of your house and not the contents unless you pay extra money.

  • Boots
    Lv 7
    1 week ago

    There is really no way anyone here can answer your question with anything other than a guess. Which could likely be wrong. 

    You will need to file a claim with your insurance company. 

    They will conduct an investigation into the coverage and the loss. Once that investigation is completed, they will make a decision regarding coverage and damages. If they determine there is coverage for the loss, they will pay the claim per your policy provisions. 

    Coverage will depend on the use/ownership of the policy, the policy and endorsements you purchased for the home and the facts of loss. 

    Since we don't have copies of your policy, dec page, new business application, have not inspected/evaluated the damages, no one here can give you a reliable answer. 

    If you want to get more information with out filing a claim, then speak to your agent and discuss the situation with them. They can't tell you 100% what would happen if you file a claim. But they can give you better guidance than we can as they have access to the policy forms you purchased.

  • car253
    Lv 7
    2 weeks ago

    Your insurance policy is a "Rental Dwelling Policy".     You have the correct policy.   Their stuff was robbed.  The Rental Dwelling Policy" does NOT cover their stuff.   If you claim the stuff stolen is YOUR stuff, then the stuff may be covered under the "contents" part of the policy.     Your family should have renters insurance.  It is very cheap.   It does not matter if they are paying rent or not, their stuff is only covered under "renters insurance".    Your insurance agent should have told you that IF you told the agent that family would be living there.  Then they should know to offer renters insurance to you no matter who is living there.  

    Bottom line: Your "contents" are covered under your Rental Dwelling Policy.   Family contents are not covered.   Family contents are only covered under "renters" insurance.  

    I also hope you have a living trust which says they are given the property if anything happens to you or you have some kind of contract in writing. 

    You might want to post more questions under the "real estate" category.

  • 3 weeks ago

    Homeowner's insurance only covers homes in which the owner lives.

    Homeowner's insurance does not cover rental properties.

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  • Anonymous
    3 weeks ago

    If you do not live in the home, you are a landlord and your relative is a tenant.   You pay for whatever kind of coverage you want as a landlord.  Your relative buys renter's insurance to protect their own belongings.

    If you told your insurance company that the home is owner-occupied when you intend to let a relative live there instead of you, you may have committed insurance fraud.

    No, your relative didn't buy any homeowner's insurance because they don't own the home.   If you all live there together, their belongings may be covered on your policy.    It's unclear what the situation actually is because you were pretty vague about who actually is living there.

  • Anonymous
    3 weeks ago

    You pick a deductible when you buy it. The higher it is the lower the cost. Mine is $1000. 

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