Homeowners Insurance

A homeowners policy has six main parts, and each one answers a different kind of loss.

Your house.

Damage to the house itself, including attached structures. The limit on this part is the most the policy pays if the house is destroyed.

Other structures.

A detached garage, a work shed or a fence.

Your belongings.

Household contents and the things you and your family own, use or wear.

Loss of use.

Necessary living expenses, up to the stated limit, while you cannot live at home after a covered loss.

Personal liability.

Claims from accidents to other people on property you own or rent.

Medical payments.

Medical bills for a guest who is hurt, paid regardless of legal liability.

You can start with what you already know. A photo of your current declarations page is fine.

The date.

When your current policy ends, or when you need coverage to start.

The house.

Its construction and its age, and any updates to heating, plumbing, wiring and roofing. Insurers look at all of these.

Your lender.

The lender’s name and your loan number, if you have a mortgage, so the clause that names your lender can be checked.

Your belongings.

A room by room list with receipts, appraisals and model and serial numbers, if you keep one.

The price starts with the house and where it sits.

Where you live.

Local fire protection, access to the fire department and local crime rates all count.

The house.

Frame houses usually cost more to insure than brick, and the age of the house matters.

The amount of coverage.

What you carry on the house, your belongings and your liability.

The deductible.

You pay it before the insurer pays a claim, and a lower deductible means a higher premium.

Home and car together.

Compare the package against separate policies.

Dwelling coverage should be enough to cover the cost to fully rebuild your home. Your lender may also require at least the amount of the mortgage.

Replacement cost or actual cash value.

Replacement cost pays to rebuild or repair with materials of similar kind and quality, without taking off for depreciation. Actual cash value takes depreciation off first.

Your belongings.

A room by room list of what you own makes the personal property limit easier to choose.

Your liability.

If a claim against you is larger than your limits, a personal umbrella policy can pay liability and defense costs above them.

These gaps sit in the wording of a standard policy. We look for them with you before you bind coverage, which means before the insurer agrees in writing to cover you.

Flood is not included.

Standard homeowners policies do not cover flood, and flood is a separate policy. Water from leaky pipes, siding and roofs is likely covered, but ground water from rain, run off or snow melt is not.

Sewer backup is an add on.

Sewer or drain backup coverage pays for losses to the house from a backup, and you choose whether to add it.

Valuables have limits.

A typical policy limits jewelry, art and heirlooms. A scheduled personal property endorsement can raise those limits, and some items may need a separate policy and an appraisal.

A business at home.

Business inventory or supplies kept at home are not likely covered. Tell your insurer about the business, because leaving it out could lead to a cancelled policy. A rider can protect a small amount of business equipment and add liability coverage for third party injuries.

Some dogs and pets.

A policy may exclude liability coverage for certain breeds of dogs or exotic pets.

A claim has a deadline.

Most policies set a time limit for reporting a claim.

Escrow.

Many lenders require that taxes and insurance be paid through an escrow account, which your mortgage lender sets up to pay certain property related expenses.

A letter asking for proof.

If your lender writes that it has no proof of insurance, send us the letter. We can send your lender the declarations page it is asking for.

Your home policy is one piece. Knowing which policy answers which loss helps show where a gap could sit.

Auto Insurance.

A car damaged by a storm in your garage is usually a claim under the auto policy’s comprehensive coverage, not the homeowners policy. Personal liability on a home policy has a few exceptions, such as auto and boating accidents.

Flood Insurance.

A separate policy from the National Flood Insurance Program or a private insurer.

Umbrella insurance.

Liability and defense costs above what your home and auto policies pay. See Umbrella Insurance.

Home and auto together.

Read what to compare before you bundle, then decide.