Frequently Asked Questions about Home Insurance
- What basic coverages are available?
- What does property damage cover?
- What does contents coverage include?
- What does additional living expense or loss of use cover?
- What is personal liability insurance coverage?
- What does medical payments insurance cover?
- What is replacement cost?
- What deductible should I choose?
- What affects home insurance prices?
1. What basic coverages are available?
The most common basic coverages are: property damage, additional living expenses, personal liability and medical payments.
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2. What does property damage cover?
Property damage coverage helps pay for damage to your home and personal property caused by such perils as fire, lightning, windstorm or hail. The perils of flood and earthquake are not covered. If you believe you need flood insurance or your lender requires you to carry flood insurance contact our office. We have companies that write flood insurance coverage.
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3. What does contents coverage include?
In general, the contents of your home and other personal belongings owned by you or family members who live with you will be covered under the policy in an amount equal to 50% of the limit of insurance carried on your dwelling. However, high valued personal property such as jewelry and cameras should be scheduled on the policy so that you are adequately protected.
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4. What does additional living expense or loss of use cover?
Most home insurance policies provide for the necessary increase in expenses you incur if your home is damaged by an insured event and you cannot live there while repairs are being made or if you are denied access to your home by government order. The coverage is generally subject to duration limits and commonly covers any expense incurred by you so that your household can maintain its normal standard of living. In some instances, this coverage may include the cost of a hotel, eating in a restaurant or storing some of your property.
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5. What is personal liability insurance coverage?
Personal liability coverage protects you and all family members who live with you against a claim or lawsuit resulting from (non-auto and non-business) bodily injury or property damage to others and for which you become legally obligated to pay. Defense costs are included, but the insurance company has no duty to defend you after the limit of liability on the policy has been exhausted.
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6. What does medical payments insurance cover?
Regardless of who is at fault, this coverage pays the resonable expenses for others accidentally injured on your premises or the areas immediately adjoining your property such as sidewalks or alleys. Medical payments coverage does not apply to your own injuries or those of family members living with you. This coverage does not apply to injuries from activities involving a business that you operate out of your home, your intentional acts, or the rental of your premises.
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7. What is replacement cost?
Replacement cost is the amount necessary to replace or rebuild your home or repair damages with materials of similar kind and quality without deducting for depreciation.
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8. What deductible should I choose?
The deductible applies only to coverages on your house and personal property. It is the amount you have to pay out of your pocket on each claim. Insurance coverage applies only after the deductible amount is exceeded. A policy with a $100 deductible will cost more than one with a $250 deductible. Higher deductibles may be available at a reduced price, but purchasing a higher deductible will mean you will pay more out of your pocket at the time of a loss
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9. What affects home insurance prices?
Type of construction: Frame houses usually cost more to insure than brick. Age of the house: New homes may qualify for discounts. Some insurance companies offer limited coverage or may not insure older homes. Local fire protection: The number of fire hydrants and fire departments and the availability of water are just some factors which determine your area\’s fire protection class. If you reside in an area without fire protection, you will probably pay more for fire insurance.
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