What is Home Insurance?

Home insurance, also commonly known as homeowner’s insurance and sometimes called hazard insurance is property insurance that covers a private residence.

It combines various coverages for losses occurring to one’s home and its contents. It covers loss of use known as additional living expenses, as well as liability insurance for accidents that may happen at the home.

Typical Home Insurance Coverages

Section I — Property Coverages

• Coverage A – Dwelling
  Covers the replacement cost or actual cash value of the dwelling not including the land. Renter’s insurance is a type of home insurance that typically has no Coverage A, although it has additional coverages for improvements.
• Coverage B – Other Structures
  Covers other structure around the property such as gazebo’s, sheds or fences. Typically limited at 10% to 20% of the Coverage A.
• Coverage C – Personal Property
  Covers personal property and typically contains specified limits for specific types of property (e.g., $200 for money, banknotes, bullion, coins, medals, etc.). Coverage C is usually 50 to 70% of coverage A.
• Coverage D – Loss of Use/Additional Living Expenses
  Covers the costs associated with additional living expenses that you incur if your home is deemed uninhabitable as the result of a covered peril such as fire.

• Coverage E – Personal Liability
  Covers damages which the insured is legally liable for and provides a legal defense at the insurer’s own expense. About a third of the losses for this coverage are from dog bites.
• Additional Coverages
  Covers a variety of expenses such as debris removal, reasonable repairs, damage to trees and shrubs for certain named perils (excluding the most common causes of damage, wind and ice), fire department changes, removal of property, credit card / identity theft charges, loss assessment, collapse, landlord’s furnishing, and some building additions. These vary depending upon the form.

Contact us to learn more about the right homeowners insurance for you.