Quick Homeowners Insurance Policy Facts
When you think of homeowners insurance do you think of it as only covering your home in case of a fire, or other natural disaster? While that is a big part of any homeowners insurance policy, there is a lot more to it than just that. Here’s a quick Q & A on everything a homeowners insurance policy covers, and what it will mean to you in the case of a claim.
What Is Covered With A Homeowners Policy Cover?
A homeowners insurance policy is really like a multiple package policy. One part of the package is property damage insurance, which protects you from damages that occur to your home, while the second part of the package covers liability for any injuries or property damage that happens to others on your property. This can include things like your tree falling on the neighbors house, or your dog that would happen to bite someone.
A homeowners insurance policy will of course cover damages from things like fire, tornado, hail, wind, and most all other natural disasters. The only exceptions will generally be floods and earthquakes. For that type of coverage you will need to buy special coverage. That’s an important point to keep this in mind if you are living in places where there is a strong chance of floods and earthquakes.
Another exception is wear and tear to the home. Most insurance companies will exclude maintenance related claims if they are caused by neglect on your part. For example: The wind blew off most of your shingles. If this happened because your shingles were already 15 years old and obviously in need of being replaced, you’re not likely to have coverage for that.
A good idea to keep in mind is to always be sure you have adequate homeowners insurance coverage. Don’t let yourself get caught without the coverage you need. So, if you live in an area prone to flooding, be sure you have flood insurance. Your insurance agent can easily arrange you to have coverage for this. The same applies if you live in an area that has frequent earthquakes, be sure to purchase a policy that will cover earthquake damage.
A homeowners insurance policy will also provide funds for any loss of use due to an insured disaster. This will help if you and your family need to move into another home or apartment temporarily. It can also provide for clothing and food.
What Does ACV And Replacement Cost Mean?
When you hear the term ACV, or actual cash value, it means the cost of replacing that item, minus depreciation. So, the older your furniture, clothes, appliances, etc., are, the less you will get in the event of a claim. If your TV is 10 years old and is damaged in a claim, you may get 25% of the cost of a new one. This is just an example for you to understand.
Replacement cost on the other hand means just that. It is the actual cost of replacing a covered item. There is no depreciation figured into the claim. I strongly advise everyone to be sure there homeowners insurance policy has replacement cost coverage included. It is very inexpensive and it provides for full replacement value on your home, and all of its contents.
What Is Liability Coverage?
Every homeowners insurance policy includes liability coverage to protect you from claims due to no fault of your own. This would include coverage in case one of your trees fall on the neighbors car, or your dog bites someone. Of course there are many other ways your home owners insurance liability protects you, but this gives you a good idea.
What About Renters Insurance?
If you do not own the home your living in, be sure to get renters insurance. Renters insurance provides coverage for your possessions in the event of a loss, and gives you liability coverage as well. Renters insurance policies are quite inexpensive and worth having. They also include coverage for loss of use in the event you can’t stay in your home or apartment due to a catastrophe.
Hopefully you now have a better understanding on what a homeowners insurance policy covers. Be sure to spend a minute and look over your policy. You want to have to guess or find out later that you don’t have coverage or when a disaster strikes. If you have questions, call your insurance agent and find out all the facts about your homeowners insurance policy.
Watch the video related to Homeowners insurance
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Posted by American Car Insurance on July 30th, 2009 filed in homeowners insurance | 18 Comments »
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18 Responses to “Quick Homeowners Insurance Policy Facts”
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July 30th, 2009 at 8:15 pm
I try to make to all of them, this was was a have to. Came in as a fire alarm, then PD reports a working fire before anyone was en route. Tore out of the house like a bat out of hell!!! Thanks for the comment and see you soon Mike.
July 30th, 2009 at 8:24 pm
A fire alarm that Actually works properly?
Nice job on this one Ed
July 30th, 2009 at 10:18 pm
Yea, maybe I am just a white cloud…
July 30th, 2009 at 8:54 pm
They don't ask, but there is a good chance they will find out anyway. My aunt has a trampoline in her back yard, which is prohibited, but she figured no one would ever know. It went unnoticed until some teenager tried to dial a number on his cell and hit the front of her house. Her insurance company (along with his) came out to inspect the damage and saw the trampoline.
They also find out when the dog attacks someone in the neighborhood or gets loose and chases the mailman and a complaint is filed.
There are plenty of incidents that could take place that would cause the insurance company to come out.
July 30th, 2009 at 9:18 pm
It really depends on how it breaks, what type of policy you have and the insurance company?
Some company's can even add riders to your policy to cover it.
Call you insurance company or ask your agent!
July 31st, 2009 at 4:16 am
Yes very much so. Certain breed's of dogs will void a home owners insurance policy. This is based usually on vicious breeds who tend to generage alot of liability claims. It states this clearly in your policy. If your friends looks at her HO3 policy she will see which specific breeds will cancel her policy. Also many HO3 policies place exclusions against trampolines & swimming pools.
If she chooses to keep the dog – she will have to go through an excess/surplus company to get her homeowners insurance. She will pay about 3x the amount she was paying prior. Its up to her if the dog is worth keeping.
July 31st, 2009 at 12:36 pm
Thank you, was a good catch. I was lucky to be up at 4am. I shot a South Holland fire last week that ended up being the same deal
July 31st, 2009 at 2:29 pm
I have to say, I support the insurance company on this one. They have to manage risk, and part of that risk the dogs people own. Unfortunately, there are quite a few really bad pit owners out there. Don't blame the insurance company, blame the irresponsible owners.
Besides, to make a comparison- a regular doc's malpractice insurance is about a fraction of what it is for a ob- have you ever wondered why there seem to be a larger number of docs getting OUT of the baby business? Used to, all gyns did OB, now, that number keeps dropping. Mostly because they can't afford to pay the insurance AND deliver babies. Are the insurance companies discrminiating against OB's?
August 1st, 2009 at 6:48 am
Thank you sir, wish you could catch one while out here!!!
August 1st, 2009 at 4:24 pm
Thank you for running into each other instead of an innocent person who is following the rules.
You stand as much chance as your homeowner paying the bills for your accident as there is that your auto insurance would cover your house burning down.
If that's not plain enough, NO.
Which ever of you was at fault in the accident owes the other for all damages.
August 1st, 2009 at 5:33 pm
You need to call an insurance company for quotes, start with your auto insurance company & go from there. There are many questions, what does the master policy cover? You would need to read the condo bylaws to find out. Does that policy cover everything attached to the unit or only to the studs? Does it cover anything that you add to or alter in the unit? So, you would purchase a condo policy (HO6 form), you would need to find out from the condo association what you actually need to cover. That would be the dwelling limit you need. Then you need to tell the insurance company how much contents coverage you want (if you had to replace everything you own), then get at least $500,000 liability, $5,000 medical payments & get $50,000 (or the company maximum) loss assessment (this covers if you are assessed for damages to common property – simplified definition – you would need to speak to an agent to explain it to you). You would also need to tell the agent the deductible you want (property coverage).
Good luck in your purchase but no one here can give you a quote.
Homeowners insurance is always an annual policy.
August 2nd, 2009 at 6:03 am
Great work again Ed! Starting to be a regular in M’ville now too!! Sorry I missed ya! See ya in Gary or M’ville soon. Hope you’re feeling better with your back! Mike
August 2nd, 2009 at 6:11 am
Great work!
August 2nd, 2009 at 4:09 am
Go the the taxing authorities homepage for your county (Google it). You can look up the average taxes on the homes for the neighborhoods you are considering.
August 2nd, 2009 at 2:54 pm
That shot was luck, I didn’t know if I should stay on the side or the front. Thanks for the comment
August 2nd, 2009 at 6:54 pm
If I were you, I'd look into two things in particular:
First is a mortgage disability policy. You would probably want to take out this policy on both you and your husband. This will help to cover mortgage payments if you or your husband are injured and unable to bring in income.
I'd also look into life insurance policies on each of you. If your husband were to pass away, would you be able to continue making mortgage payments on your own? Would you choose to move? If not, life insurance is a must.
August 3rd, 2009 at 2:39 am
hey, great footage !! love the shot at around 4:25….the guys in the garage pullin ceiling
August 3rd, 2009 at 2:13 am
The more available you are to potential customers, the more likely you will get to quote them. I know that when I am attempting to buy something, I partly base my decision on how easy it is to get ahold of someone.