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Build Your Own Homeowners Insurance Policy

Updated March 1, 2024 . AmFam Team

Out-of-the-box homeowners insurance isn't built to fit your unique circumstances. That's why American Family Insurance offers customizable coverages.*

We let you design a policy that provides a wide net of protection for your home and belongings. Moreover, our optional coverages and discounts allow you to control what you pay and protect.

This article can help you understand the basics of homeowners insurance so you can build a policy that fits your needs.

What does standard homeowners insurance cover?

Insurance can be confusing, and if you haven’t reviewed your coverages or talked to your agent lately, it’s easy to forget your policy's details.

As a refresher, the following are common standard home insurance coverages.

Coverage for Your Home: Dwelling Coverage (Coverage A)

Protects your home — think roof, walls, floor, siding and windows.

Learn more about dwelling coverage >

Coverage for Other Structures: Other Structures Coverage (Coverage B)

Protects structures such as detached garages, sheds, fences and pools.

Learn more about other structures coverage >

Coverage for Your Things: Personal Property Coverage (Coverage C)

Helps replace or repair items such as clothing, jewelry, appliances, furniture and electronics.

Learn more about personal property coverage >

Coverage for Living Expenses: Loss of Use Coverage (Coverage D)

Helps pay for expenses such as hotel stays and food should your home become unlivable.

Learn more about loss of use coverage >

Coverage When Accidents Happen: Personal Liability (Coverage E)

Provides financial protection for property damage and injury to others.

Learn more about personal liability coverage >

Coverage for Medical Expenses: Medical Expense Coverage (Coverage F)

Helps pay medical expenses for others injured on or off your property.

Learn more about medical expense coverage >

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What types of events are you protected against?

Standard home insurance protects you from unexpected losses up to your coverage limits.

The following are a few examples of covered events:

  • Acts of your children and pets
  • Claim defense expenses
  • Damage from the weight of ice, snow or sleet
  • Fire and smoke damage
  • Frozen interior plumbing
  • Sudden water damage from plumbing, heating or cooling systems
  • Theft and vandalism
  • Windstorms, lightning, falling objects and hail

It's helpful to become familiar with your policy details, such as limitations and exclusions. You determine your limits when you sign up for your policy. Doing so helps give you peace of mind when you need to file a claim.

Optional Coverages to Customize Your Policy

You can personalize your homeowners insurance with additional coverages. They help deliver protection from unexpected events your standard policy doesn’t cover.

Use the following list of coverage add-ons to customize your policy based on your needs.

Increased Dwelling Limit Coverage

This endorsement increases your dwelling coverage by 20% when your home is insured to 100% of its replacement cost.**

Jewelry, Gemstones, Watches and Furs Coverage

Your base policy includes a $2,000 coverage for all jewelry, gemstones, watches and furs combined. If the total value of these items is worth more, you can increase your coverage amount for a broader range of protection.

Learn more about jewelry insurance >

Equipment Breakdown Coverage

Offers protection for your appliances, home systems or smart home devices. The damage must be due to mechanical, electrical or pressure systems breakdown.***

Learn more about Equipment Breakdown coverage >

Water leaking from a sink

Hidden Water Coverage

Leaks you can’t see within your walls, floors, ceilings or cabinets can cause expensive damage to your home. Adding this optional coverage provides a wider net of protection.†

Learn more about Hidden Water Damage coverage >

Identity Fraud Expense Coverage

Helps deliver up to $25,000 for expenses associated with identity restoration after an unexpected event. It may help cover legal fees, lost wages and other costs related to restoring your good name.

Learn more about identity fraud expense coverage >

Credit Monitoring

We've partnered with CyberScout to deliver easy access to their credit monitoring services. This add-on helps you prevent, react and recover from a cyberattack. It also pairs seamlessly with our identity theft coverage that helps protect your credit, identity and data.

Learn more about credit monitoring coverage >

Service Line Coverage

Helps pay to repair or replace damaged service lines. It includes underground piping and wiring for electrical power, heating and natural gas. Service lines that aren’t underground aren’t covered.††

Learn more about service line coverage >

Sewer Back-up, Septic Back-up and Sump Overflow Coverage

Designed to help mitigate the cost of repairs caused by water coming back into a home due to a backed-up drain or an overflowing sump.

Learn more about sump pump failure coverage >

Personal Injury

Offers protection for claims brought against you, including libel and/or slander. It helps pay legal costs associated with false arrests, detention or imprisonment. It also helps cover malicious prosecution, wrongful eviction or wrongful entry.

Learn more about personal injury protection >

Dwelling and Other Structures Replacement Cost Coverage

Helps repair or rebuild your damaged home and other structures without a depreciation deduction. †††

Worker planking a house siding.

Matching Siding Coverage

Homeowners insurance usually covers siding damages due to wind, hail, fire or a tornado. But it only helps replace the affected portions.

If your home's original siding (or a reasonable match) is unavailable, you could be left with mismatched siding. This coverage helps ensure all your home's siding matches by replacing undamaged siding, too.

Learn more about matching siding coverage >

Flood Insurance

Most insurers' homeowners, renters or condo policies don't offer flood damage protection. We can help protect you from flood damages with insurance offered by the National Flood Insurance Program.‡

Learn more about flood insurance >

Inland Flood Insurance

This coverage helps financially protect you from flash flood damage. Covered events include flooding from inland waters overflowing onto normally dry land.‡‡ 

Learn more about Inland Flood coverage >

Home Renovation Insurance

Helps protect you from construction material theft or damage while renovating your home. It also helps cover foundation collapse and applies whether you’re handling your home's renovations or a contractor is taking care of it.

Learn more about home renovation insurance >

Home-Based Business Coverage

All businesses, whether they’re run out of an office or your home, need to be insured. This coverage extends your home insurance's liability limits and coverages to your small business.

Learn more about home business insurance >

Nursing Home and Assisted Living Coverage

If a loved one moves into an assisted living facility, this coverage helps protect their personal belongings up to $15,000. If you and your loved one want to increase your limit, ask your agent about obtaining a renters policy.

Learn more about nursing home and assisted living coverage >

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Homeowners Insurance Discounts ‡‡‡

You can further customize your homeowners insurance policy by checking out our discounts. The following are some of the ways we may be able to help you save.

Loyalty Discount

You may qualify for a lower home insurance premium if you've been a loyal American Family customer for a year or more. We reward you for being part of our family.

Renovated Home Discount

Renovating your house could earn you a discount. You may qualify if you have completely replaced your home's plumbing, electrical and heating systems in the last 15 years.

Safe, Secure, Smart Home Discount

We offer homeowners our Safe, Secure, Smart Home discount to help make home security more accessible. Those with smart home devices or home security systems may be eligible to save.

Bundle Auto & Home Discount

Bundling your homeowners and auto insurance policies can help you save time and money. The more you insure with American Family, the more you may be able to save. You can also manage your policies from the MyAmFam app. Ask your agent for details.

Insurance Payment Discount

Streamlining the way you pay has its rewards when you take advantage of our AutoPay, Full Pay and Paperless discounts. Learn more about our billing discounts.

Age of Home Discount

Newer homes have fewer claims, so if yours is under 15 years old, you could be eligible for this discount. The coverage can vary by state, so ask your agent for qualification details.

Get a Home Insurance Quote

You can build your custom policy now that you know about standard and add-on homeowners insurance coverages. To get started, use our Home Quoting Tool or contact your local American Family Insurance agent today.

*This information represents only a brief description of coverages, is not part of your policy, and is not a promise or guarantee of coverage. If there is any conflict between this information and your policy, the provisions of the policy will prevail. Insurance policy terms and conditions may apply. Exclusions may apply to policies, endorsements, or riders. Coverage may vary by state and may be subject to change. Some products are not available in every state. Please read your policy and contact your agent for assistance.

**Available for homeowners only.

***Coverage provided by adding the Equipment Breakdown optional endorsement. Coverage provides protection should appliances, home systems or smart home devices be damaged due to mechanical, electrical or pressure systems sudden breakdown. Does not provide coverage for breakdown caused by normal wear and tear. Coverage applies once a $500 deductible has been met.

†Hidden Water Damage coverage is an optional coverage. May not be available in all states. Some restrictions apply to seasonal homes and manufactured homes. The leak must occur from within a plumbing, heating, A/C, fire sprinkler or a home appliance. Refer to your policy documents for coverage limit details. Coverage applies after the property deductible has been met. Mold damage limited to coverage limits provided by your homeowners policy.

††Service Line coverage. Refer to your policy documents for coverage limit details. Coverage applies to covered losses only after a $500 deductible(s) has been met. Please speak with your agent to learn more about your coverage details and options.

††† Available for manufactured homeowners only.

‡American Family Insurance is a participating company in the National Flood Insurance Program (NFIP). NFIP is managed by the Federal Emergency Management Agency (FEMA), a component of the U.S. Department of Homeland Security (DHS). Flood insurance is a separate policy underwritten by NFIP.

‡‡Flash Flood coverage Coverage provided by adding the Inland Flood optional endorsement. This endorsement does not satisfy mandatory flood insurance coverage should it be required by your federally regulated lender for your home mortgage or loan. This insurance product is not affiliated with the National Flood Insurance Program (NFIP). Please check with your agent and read the policy and endorsements for exact details on coverage limits and exclusions. Coverage applies after the property deductible has been met.

‡‡‡Discount and savings amounts and product eligibility will vary by state, property type, policy form and company underwriting the auto and/or homeowners policy. Discounts may not apply to all coverages on an auto or property policy. Discounts do not apply to a life policy. Some restrictions may apply.

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