Home Insurance
As your largest investment, it’s important to make sure your home has the proper insurance coverage. We’ll protect your home and contents in it for the lowest price possible.
What is Home Insurance ?
Home Insurance, also commonly called hazard insurance or homeowner’s insurance (and often abbreviated in the US real estate industry as HO3), is a type of property insurance that covers a private residence.
Home insurance is an insurance policy that combines various personal insurance protections, which can include losses occurring to one’s home, its contents, loss of use of the home caused by a covered loss, as well as liability insurance for accidents that may occur at the home or at the hands of the insured homeowner within the limitations of the policies specified territory.
Examples of Home Insurance Coverages
Coverage A - Dwelling
The primary coverage of any Home Insurance policy which covers the value of the dwelling itself (not including the land.) Typically, a coinsurance clause states that as long as the dwelling is insured minimum 80% to the replacement cost value, losses will be adjusted at a replacement cost, up to the policy limits. Many insurance carriers may require homes to be insured to their full replacement cost valuations as a requirement to place coverage with them.
Coverage B - Other Structures
Covers other structures around the property that are not used for business (except as a private garage.) Other structures are not directly attached to the main dwelling. Typically in a standard hom insurance policy this coverages is limited to 10%-20% of the Coverage A amount of a policy. Additional amount can be added by an endorsement for an additional premium (cost) in the event additional coverage is needed.
Coverage C - Personal Propert
Covers personal property (commonly referred to as contents.) Special limited limits apply to specific classes of items. Example: Cash, Coins, Medals, Fine arts are limited to a set dollar amount. So if you have a house full of collectibles or bars of gold, make sure you mention that to your insurance agent. Jokes aside, your personal property would include your furnishings, clothing and household items such as kitchenware and cutlery.
Coverage D - Loss of Use
This coverage provides a dollar amount, generally 10%-20% of the Coverage A (Dwelling) amount in the event a covered loss occurs, and the home is unfit or unsafe to live in. You may be able to access this coverage if you incur additional expenses such as renting a home or apartment while repairs and renovations are taking place at your home.
Additional Coverages & Endorsements
In addition to the standard home insurance coverages, a variety of other important coverage options are also available at an extra premium. In most cases, the additional charge for these valuable coverages is well worth it. A few examples of additional coverages would be:
– Water Back Up (We have all seen a toilet overflow I think)
– Animal Liability (If your pet hurts someone)
– Service Line Coverage (For any lines that provide utility)
Just to name a few. Review your policy and contact your agent
Liability Coverages
Personal Liability is a Section II home insurance coverage. covers damages which the insured is legally liable for and provides a legal defense at the insuring companies expense. About one third of the losses for this coverage are from dog bites. In the case of a dog bite, coverage would apply only if you selected the animal liability endorsement mentioned in the section above.
Exclusions
In a typical home insurance policy, specific exclusions will be stated in the policy language. Found in the exclusions section of the policy packet (jacket.) These usually include things such as earth movement, neglect, war, nuclear hazard, intentional losses, just as a few examples. It is strongly advised to review your entire policy to know what is and what is not covered and coverages can vary depending on your particular home insurance company.
Home insurance or Homeowner’s insurance doesn’t have to be complex. We welcome any questions you may have regarding your current home insurance policies and would love an opportunity to earn your trust and your business. Please contact us by clicking the button above or giving us a call to discuss your home insurance needs.
