HOME INSURANCE

Homeowner’s insurance is a type of property insurance that covers a private residence. It is an insurance policy that combines various personal insurance protections, which can include losses occurring to one’s home, its contents, loss of use (additional living expenses), or loss of other personal possessions of the homeowner, as well as liability insurance for accidents that may happen at the home or at the hands of the homeowner within the policy territory.

Additionally, homeowner’s insurance provides financial protection against disasters. A standard home insurance policy insures the home itself along with the things kept inside. Homeowners insurance does not insure the land. When you buy a home, you are also purchasing the land. Therefore, your value of the home dwelling coverage will most likely be lower than what you paid for the whole home.

Homeowner’s policies insures both the property and has liability coverage with a single premium. This means that it covers both damage to one’s property and liability for any injuries and property damage caused by the owner or members of his/her family to other people. It may also include damage caused by household pets. Coverage limits are typically provided as a percentage of the primary Coverage A, which is coverage for the main dwelling.

The cost of homeowner’s insurance often depends on what it would cost to replace the home and which additional endorsements or riders are attached to the policy. The insurance policy is a legal contract between the insurance carrier (insurance company) and the named insured(s). It is a contract of indemnity and will put the insured back to the state he/she was in prior to the loss. Typically, claims due to floods or war (whose definition typically includes a nuclear explosion from any source) are excluded from coverage, amongst other standard exclusions (like termites). Special insurance can be purchased for these possibilities, including flood insurance.

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Homeowner Policy Coverage

Coverage A Dwelling pays for damage to your house and to structure attached to your house. Damage to your plumbing, electrical wiring, heating, and permanently installed air-conditioning systems are all covered fixtures.

Coverage B Other Structures coverage pays for damage to fences, tool or storage sheds, swimming pools, freestanding garages, guest cottages and other structures not attached to your home.  If you add these types of items after purchasing please make sure you update your agent with the value of the new purchases. Your policy should be endorsed. Other structures coverages starts at 10% of the dwelling value.

Coverage C Personal property coverage reimburses you for the value of your possessions including furniture, electronics, appliances and clothing, damaged or lost even when they aren’t on your property, such as those at an off-site storage locker or with your child at school or college. Any property away from the insured location may be subject to coverage based upon a limited percentage of value or depending on some policies at replacement cost.

Some forms of personal property – such as silverware, computers, guns, money, expensive antiques, and jewelry – have limited coverage under your homeowner’s policy and may need additional insurance.  Additional and broader coverage may be added to your policy by purchasing an endorsement.

Coverage D Additional living expenses or loss of use covers the additional costs of living incurred by a policyholder should they be temporarily displaced from their place of residence.

After a disaster you might not be able to live in your home while repairs are being made. Luckily, most home insurance policies cover additional living expenses or “loss of use” costs that you incur due to a covered loss. Expenses may include limited rental home or motel cost, restaurant meals and storage.

Some examples of covered expenses are hotel bills, apartment rent and meals at restaurants. Some policies will only pay for the difference between what your normal bills are and what you had to pay because of the disaster. For example, if you normally pay $400 for food every month and now you have to pay $600, the company will pay you $200.

This coverage doesn’t cover your normal expenses such as gas, electric, water, or your mortgage and it won’t pay for you to stay in a five star hotel while your home is being repaired. Your additional living expenses will be covered for the shortest period of time required to repair or replace your home.

Ordinance of law coverage provides limited protection for costs associated with repairing, rebuilding, or constructing a structure when it was damaged due a covered cause of loss. Building codes get updated every three years. The process of updating model codes ensures new technologies, materials and methods, as well as better approaches to health and safety, can be incorporated into the next generation of buildings. If you live in an older home and experience a loss, for instance, you may be more likely to have to upgrade to current building codes compared to living in a newer home that already meets up-to-date requirements. 

There are two types of coverages that fall under ordinance or law insurance:

  1. Cost to upgrade: In the event your home is fully or partially destroyed by a covered loss event, ordinance or law coverage will help to cover the costs of updating your house to ensure it meets current building codes. 
  2. Rebuilding expenses: If your home needs to be replaced, repaired or upgraded after a loss, ordinance or law insurance will help pay for the efforts needed to meet current building laws or ordinances.

If your home is older, it is important to consider building ordinance coverage. Building codes change periodically, so if your house is badly damaged and you are forced to rebuild all or part of the home you will need to make sure that all the new areas that are built are up-to-code—and this can cost you. A few companies offer policies that will pay for you to have your home rebuilt to code if it’s destroyed.

Endorsements cover your special personal property. If you have especially expensive items, like jewelry, furs or expensive equipment, or art, you may need to purchase an additional type of coverage, called a floater or endorsement. This will allow you to insure each expensive item individually or as a collection based on what the item is worth. Homeowners policies cover person items such as guns, jewelry, business assets, waterbeds, earthquake and flood coverage, paintings, antiques, collections, etc. Peace of mind is knowing that your insured property is properly insured Now.

Personal Liability covers your legal defense if you are sued and financial loss if found legally responsible for injuries or damages to someone else. This coverage applies to you and all family members who live with you.

Medical Payments pay for persons accidentally injured on your property or away from your property caused by a member of your family or your pets regardless of who is at fault. This coverage does not apply to your injuries or those of family members living with you or to activities involving your at-home business. It also doesn’t cover a vendor who is working on your home.  They should have their own insurance to take care of them. Call us to find out the questions to ask anyone who is working on your home.  They should provide certain documentation that they are covered. We will be glad to help you in any way that we can!(702) 541-0882 Call to get a Home or Renters Insurance Quote

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