Protecting My Investment
What is Homeowner Insurance?
It is insurance that protects your home and personal belongings from fire, theft, vandalism etc.
What is covered and not covered?
Home Insurance is divided into two parts: property protection and liability protection.
Property protection includes: dwelling, other structures, personal property, loss of use or additional living expenses and additional coverages.
Liability protection includes: medical payments, liability and personal liability.
- This pays the medical expenses of others when they're accidentally injured on your property. Most policies include at least $1,000 of coverage, but you can get higher limits. Generally, this coverage applies only to guests who are on your property with your permission.
- This pays expenses for bodily injury and property damage that happens to others when you're legally liable.
For example: If you knew you had a loose deck railing and someone leaned on it, and fell off and was hurt, you can be held liable.
- Most policies include at least $100,000 of coverage, but higher limits may be available.
- This extends coverage beyond your property limits. If an incident occurs involving family members who live with you (as defined in your policy) at other locations, it will cover the liability of your family members.
For example: It may provide coverage if your minor child damages a neighbor’s property.
What's Not Covered?
There are several major risks that a standard homeowner policy does not cover. If you face these risks, you should strongly consider buying additional coverage.
This coverage provides for repair or replacement of your home due to an earthquake.
You'll need flood insurance to cover you against floods, flood-related erosion, abnormal tidal surges and mud flow.
Homeowner policies usually don't cover damage due to land movement or landslides.
Some companies will allow you to buy additional coverage for mold.
Other Common Things your basic policy doesn't cover
- Wear and tear, deterioration
- Maintenance issues, including slow water leaks
- Damage due to animals or rodents
- Foundation settling and cracking
In addition to your basic homeowner policy, you may want to think about the following coverage:
- Difference in conditions - You can buy this coverage to protect your home against damage caused by excluded perils, such as earthquakes, floods, landslides, and sinkholes.
- Another residence on your property - This coverage protects you if you have a second residence on your property, such as a rental house or a mother-in-law apartment.
- Secondary residence premises - This coverage provides protection for a secondary residence, such as a summer home. You might get the additional coverage at a reduced rate by buying a rider to your homeowner policy.
- Home-based business - If you run a business out of your home, you might be uninsured and not realize it.
- Sewer backup - This coverage protects you against losses due to sewer or sump-pump backup.
- Umbrella liability policies - These policies extend your coverage above the limits of the liability coverage you already have through your homeowner and auto policies. They provide you with an extra layer of protection.
- Watercraft - This endorsement covers small sailboats and outboard motorboats. It expands your personal-liability and medical-payments coverage. There are size limitations to watercraft and engine horsepower, so talk to your agent.