Insurance Matters

Homeowners Insurance Made Easy

The Basics of Homeowners Insurance:

For most of us our home is our most valuable asset. You want to make sure you are properly covered. There are two types of Homeowner’s policies: HO3 and HO5, and both cover the Dwelling and the belongings your home contains, however, it does not insure the land. Homeowner’s policies are divided into two basic parts: Property and Liability protection.

Property Protection:

Property protection covers four main items:

Coverage A- The Dwelling itself

Coverage B- Other structures ( not attached to the home) such as a storage shed or detached garage

Coverage C- Personal property (What you can pick up and carry out)

Coverage D- Loss of use ( In the event of a claim and you can’t live in your home while it is being repaired)

Endorsements are often added coverage to a policy at an additional premium. The recommended endorsements types are:

·        Replacement Cost: of both the dwelling and personal property. This is so items are not depreciated in the event of a claim.

·        If you have expensive jewelry, art work, collectibles, etc.

·        Identity theft

·        Older homes- ordinance or law coverage (this is for homes to be brought up to building codes in the event of a loss)

·        The HO5 policy form- is the “Cadillac” of policies. Everything is included except what is excluded. You do not need as many endorsements in this policy but they do cost more.