Homeowner’s insurance or Home insurance HO1 is a type of property insurance that covers a private residence. It’s usually the most valuable asset you have.
Some additional lines of insurance that we service:
- Beach Homes
- High Value Homes
- Rental Dwelling
- Secondary Residences
- Vacation Homes
Property Coverages
- Coverage A – Dwelling
Covers the value of the dwelling itself (not including the land). Typically, a coinsurance clause states that as long as the dwelling is insured to 80% of actual value, losses will be adjusted at replacement cost, up to the policy limits. This is in place to give a buffer against inflation. HO-4 (renter’s insurance) typically has no Coverage A, although it has additional coverages for improvements. - Coverage B – Other Structures
Covers other structure around the property that are not used for business, except as a private garage. Typically limited at 10% to 20% of the Coverage A, with additional amounts available by endorsement. - Coverage C – Personal Property
Covers personal property, with limits for the theft and loss of particular classes of items. Typically 50 to 70% of coverage A is required for contents. - Coverage D – Loss of Use/Additional Living Expenses
Covers expenses associated with additional living expenses i.e. rental expenses. - Additional Coverages
Covers a variety of expenses such as debris removal, reasonable repairs, removal of property, credit card / identity theft charges, loss assessment, landlord’s furnishing, collapse, and some building additions. These differ depending upon the form. - Exclusions
In an open perils policy, specific exclusions will be stated. These generally include earth movement, water damage, power failure, neglect, war, etc. The concurrent causation exclusion excludes losses where both a covered and an excluded loss occur. - Floods
Flood damage is typically excluded under standard homeowners and renter’s insurance policies. Flood coverage, however, is available in the form of a separate policy both from the National Flood Insurance Program (NFIP) and from a few private insurers.
Liability Coverages
Coverage E – Personal Liability
Covers damages which the insured is legally liable for and provides a legal defense at the insurer’s own expense.