Homeowners Insurance

Main parts of your homeowners insurance:

Coverage A, Dwelling

This section protects your house and any attached structures, such as garages, decks or fences. The typical policy covers your home when it is damaged by many perils (causes of loss) including fires or storms. However, the following perils are usually excluded from coverage under the homeowners policy:

• Earthquake

• Flood

• Faulty maintenance

• Damage from insects or vermin

• Wear and tear, gradual damage or deterioration

 

Coverage B, Other Structures

This coverage section protects structures that are not attached to the home, such as a detached (separate) garage, storage or utility shed playground equipment and swimming pools.

 

Coverage C, Personal Property

This covers your possessions, whether they are at your home or away with you on vacation. Personal property is often covered on a named peril basis. This means that only the causes of loss listed in the policy section are covered. The coverage is also subject to limitations and exclusions. Types of property having significant value, such as jewelry, fine arts, collectibles, etc., may require special protection. Talk to us about scheduling (adding) coverage on a “rider” which broadens and extends coverage for high-valued possessions.

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Actual Cash Value vs. Replacement Cost
Commonly, protection under sections A and B is provided on either an actual cash value or a replacement cost basis. Actual cash value is replacement cost minus depreciation. Replacement cost is the actual cost to replace the structure, regardless of depreciation. Check your current policy to see which type of coverage you have. Coverage under section C is usually provided on an actual cash basis. However, as your agent may be able to add replacement cost to your possessions just like that found in Coverage A.

 

Coverage D, Loss of Use

This coverage handles the cost of additional living expenses while your home is being repaired from a covered loss. Additional livings expenses would typically include food, housing, and transportation. However, the expenses must exceed what your family normally incurs.

 

Coverage E, Personal Liability

This coverage responds if you are legally responsible for causing property damage or physical injury. Protection includes paying for your defense costs and any financial judgment for covered incidents. Naturally the coverage would not apply for excluded situations, such as intentional injuries.

 

Coverage F, Medical Payments

This coverage provides rapid reimbursement for minor injuries, such as a guest who trips and falls while visiting your home. This coverage does not apply to a family member. For example, if your child and your neighbor's child are both injured while playing and need to go to the emergency room, this coverage will pay for your neighbor's expenses but not for your own child.

**Note** This is a brief overview of homeowners insurance. All of the coverage provided by the homeowners policy will be subject to limitations such as exclusions, policy limits, and deductibles. Its important we discuss your details of coverage and we can also address any other insurance related questions.