01
Home + other structures
Open perils: your home
Your home and detached buildings are usually covered for physical damage unless the policy says the cause is not covered.
The policy lists what is not coveredNC Home Insurance Field Guide
What does your NC homeowners (HO-3) policy cover?
A simple guide to what an HO-3 policy covers, what it may not cover, and how coverage limits work.
- Local guidance
- No jargon
- Built for NC homeowners
The big idea
Your house and your belongings are covered differently.
See how it works
North Carolina · Homeowners education series · 01
The 60-second answer
An HO-3 policy uses two sets of rules.
Insurance companies call the cause of damage a peril. Fire and wind are examples. Your home follows one set of rules. Your belongings follow another.
02
Your belongings
Named perils: your belongings
Your belongings are usually covered only when the cause of damage is listed in the policy.
The policy lists what is coveredWords to know
Four insurance words, made simple.
- Deductible
- The part of a covered loss you are responsible for before the policy pays.
- Limit
- The most the policy may pay for a type of coverage.
- Endorsement
- An add-on that changes what the policy covers.
- Exclusion
- A loss or item the policy says it will not cover.
Inside your policy
Your policy in six simple parts.
Coverages A–D help protect your home, belongings, and extra living costs. Coverages E–F may help if someone is hurt or you damage another person's property.
A
01 / 06
Coverage A / Dwelling
Your home
Helps repair or rebuild your home after covered damage.
- Think
- Roof, walls, built-in cabinets, attached garage
- Limit
- Usually based on estimated rebuild cost
B
02 / 06
Coverage B / Other structures
Detached buildings
Helps cover buildings and structures that are not attached to your home.
- Think
- Detached garage, shed, fence, gazebo
- Limit
- Often 10% of Coverage A
C
03 / 06
Coverage C / Personal property
Your belongings
Helps repair or replace belongings damaged by a cause listed in the policy.
- Think
- Furniture, clothing, electronics, kitchenware
- Limit
- Often 50% of Coverage A
D
04 / 06
Coverage D / Loss of use
Extra living costs
Helps pay extra costs when covered damage makes your home unsafe to live in.
- Think
- Temporary housing, extra meal costs, storage
- Limit
- Often 20% of Coverage A
E
05 / 06
Coverage E / If you cause harm
Personal liability
May help with covered costs if you are legally responsible for injuring another person or damaging their property.
- Think
- Guest injury, accidental property damage
- Limit
- Shown on your policy summary, called the declarations page
F
06 / 06
Coverage F / Medical payments
Guest medical bills
May pay a guest's covered medical bills after an accidental injury on your property. This can often apply even if you did nothing wrong.
- Think
- A visitor's minor fall or accidental injury
- Limit
- Shown on your policy summary, called the declarations page
*These percentages are common starting points from the NC Department of Insurance. They are not a promise about your policy. Check your policy summary, called the declarations page, for your actual limits.
Covered causes of loss
What can trigger the protection?
Insurance companies call the cause of damage a peril. The coverage rules are different for your home and your belongings.
Read the NC DOI consumer guide
Common named perils for belongings
Check your form
- 01 Fire or lightning
- 02 Windstorm or hail*
- 03 Smoke
- 04 Theft
- 05 Vandalism
- 06 Falling objects
- 07 Weight of ice, snow, or sleet
- 08 A sudden and accidental release of water from plumbing or an appliance
- 09 Sudden damage from an electrical surge
*Wind or hail may be excluded or handled separately in some NC coastal areas. Deductibles and exclusions vary.
Read this before a loss
Common gaps that surprise homeowners.
A basic policy may not cover every risk. You may be able to add coverage with a policy add-on, called an endorsement, or buy a separate policy.
Flood
Rising surface water and flooding are not covered by a standard homeowners policy. Flood insurance is separate.
Ask about flood insuranceEarthquakes & land movement
Damage from earthquakes, mudslides, mudflows, and landslides is usually not covered. You may be able to buy an earthquake add-on.
Ask about earthquake coverageWater backup
A basic policy usually does not cover water or sewage that backs up through a drain or overflows from a sump pump.
Ask about a water-backup add-onNormal aging & upkeep
Home insurance is meant for covered sudden damage. It does not pay for normal aging, rot, poor upkeep, or regular repairs.
Know your roof and system conditionValuable belongings
Jewelry, guns, art, cash, and collectibles may have lower dollar limits or fewer types of loss covered.
Ask about extra coverage for valuablesBusiness or rentals
A home business, short-term rental, or property rented to others may limit or remove some coverage.
Tell your agent how the home is usedThe NC Department of Insurance says most home policies do not cover flood, earthquake, mudslide, mudflow, or landslide. Wind or hail may also be left out in some cases.
View the official NC overview
Policy review card
Keep with your records
Find these 8 things on your declarations page, which is your policy summary.
- 1 Policy form: is it actually HO-3?
- 2 Your home's rebuild limit, called Coverage A
- 3 Limits for buildings, belongings, and extra living costs
- 4 Liability and medical payments limits
- 5 Your main deductible—the amount you pay first
- 6 Wind, hail, or named-storm deductible
- 7 How the policy pays for roof damage
- 8 Every add-on and every listed exclusion—something the policy will not cover
Tip: the declarations page is your policy summary. The full policy and its add-ons contain the rules.
The most useful five minutes
The name HO-3 does not tell the whole story.
Two HO-3 policies can cover different things. Deductibles, roof rules, add-ons, special dollar limits, and company rules can change what the policy pays.
“Can you show me what is not covered, has a lower limit, or is paid after subtracting for age and wear?”
That is the most valuable question to bring to a policy review.
Practical homeowner guides
Three small actions. Much better records.
Use these quick guides now, before a storm, fire, theft, or water loss makes things stressful.
Guide 01
Build a room-by-room home inventory
- Video each room slowly
- Open cabinets and closets
- Capture serial numbers for major items
- Store a copy away from home
Guide 02
Make a storm-ready policy file
- Policy number and the insurance company's claims phone number
- Current policy summary and add-ons
- Roof age and contractor records
- Photos of every exterior side
Guide 03
Take the first five smart steps
- Protect people and prevent more damage
- Photograph before cleanup when safe
- Call the insurance company as soon as you can
- Keep receipts and a written list of calls and updates
Common questions
Plain answers to the questions we hear most.
Open each answer. Then check the forms listed on your own policy summary.
Ask Bill Layne Insurance a question01Does HO-3 mean everything is covered?+
No. An HO-3 policy covers many risks, but it does not cover everything. Your home and detached buildings are usually covered unless the policy excludes the cause of damage. Your belongings are usually covered only for causes listed in the policy. Limits, deductibles, rules, and add-ons still apply.
02Does an HO-3 policy cover roof damage?+
A roof may be covered if a covered event, such as wind or hail, caused the damage. The roof's age and condition, your deductible, the way the policy pays roof claims, and any roof add-ons can change the payment.
03Is water damage covered?+
Some sudden and accidental water damage, such as damage from a burst pipe, may be covered. Flooding, slow leaks, poor upkeep, and water that backs up through drains are different. They may not be covered or may need extra coverage. Where the water came from matters.
04Are jewelry and collectibles fully covered?+
Not always. A policy may have lower dollar limits for jewelry, art, guns, cash, collectibles, and other valuables. You may be able to list valuable items on a policy add-on for higher limits or wider coverage.
05Is the home insured for its market value?+
Usually not. Coverage A is based on the estimated cost to rebuild your home. It is not based on the sale price, mortgage balance, or land value. Rebuild cost may be more or less than market value.
06Can this page confirm whether my claim is covered?+
No. A claim decision depends on your exact policy, its add-ons, what happened, what caused the damage, and the insurance company's review. This guide is for learning only. It cannot start or change coverage or decide a claim.
Bring the guide to your real policy
Know what you have before you need it.
We will review your policy summary, deductibles, add-ons, and common gaps in simple terms—without the hard sell.