Home Insurance

Home Coverage Types

Coverage A (Damage to the House): Focuses on the replacement value of your home in the event of a loss. This specified amount is the maximum amount you will receive if your house is totally destroyed. 

Coverage B (Other Structures): Covers damage to other structures or buildings, such as a detached garage, work shed, or fencing.

Coverage C (Personal Property): Covers damage to, or loss of personal property. Personal property includes household contents and other personal belongings used, owned, or worn by you and your family.

Coverage D (Additional Living Expense): Covers additional living expenses when incurred. This means that the policy covers the necessary living expenses up to the stated limit, incurred by the insured to continue, as nearly as possible, the normal standard of living when the house cannot be occupied due to a covered loss.

Coverage E (Comprehensive Personal Liability): Protects you against claims arising from accidents to others on property that you own or rent. With a few exceptions, such as auto or boating accidents, it is an all purpose liability policy that follows you wherever you go.

Coverage F (Medical Expense): Covers medical expenses and is limited to an amount per person and per accident for injuries occurring on your premises to persons other than an insured, or elsewhere, if caused by you, a member of your family, or your pets. An important feature of this coverage is that payment is made regardless of legal liability.

Additional Coverages

Extra Contents Coverage: Most of the coverages are a flat percentage of the amount of insurance on the home itself. For example: contents coverage is 50% of the insurance on the home itself. If you insure your home for $100,000, the contents coverage will be $50,000. For a small extra fee, you can increase the coverage on your contents without increasing the amount of insurance on the home itself.

Replacement Cost: Most companies offer "Guaranteed Replacement Cost Coverage" for an additional premium. Ask if this is available and to explain the advantages of having this broader coverage. The most important coverage that is usually offered is full replacement cost coverage on your roof with no deduction for depreciation. 

Personal Property Extended: Most policies typically limit coverage for the theft of jewelry, furs, firearms, computers, and other items to fit the coverage needs of the average insured. It is the client's responsibility to review the limitations placed on certain types of property. If needed, increase the coverage of one area or another by adding a "Scheduled Personal Property Endorsement" to the basic policy.

Umbrella: Additional liability coverage and medical payments coverage for an extra premium.

Flood Insurance: The most important exclusion is flood, as many people have learned to their great misfortune. If you need flood coverage, any property/casualty insurance agent can help you get it. If you live in a flood zone, don't risk going without flood insurance.

Earthquake Insurance: No standard insurance policy, including the homeowners policy, covers catastrophic damage that can be caused by an earthquake. For an additional premium, most companies offer an earthquake endorsement with your homeowners policy that will protect you in case your home suffers earthquake damage. In some areas, this coverage is typically inexpensive and should be considered.