A homeowners policy is a package type of policy which means that it includes protection
against several types of losses. It is only available to individuals that live in
a house they own.
Coverage for your house can be "comprehensive", as opposed to being limited to certain
types of losses. You should be aware of the difference between the available policy
A "limited" policy type will specify the types of losses for which you will be covered.
A "comprehensive" policy pays all losses except for those specifically named as
excluded. Losses are caused by perils. Perils may be fire, vandalism, hurricane,
theft, explosions, aircraft crash. breakage of glass, ice, auto, etc.
Homeowners policy include the following coverages:
Contents - Personal Property
The contents of your home are also covered. We'll provide you with an inventory
sheet to list your personal property and values. The amount provided is normally
70-75% the amount you carry on your home, but that amount can be increased where
Certain property has specified limits of coverage. The inventory list will help
us determine if you need extra coverage for those items.
"Replacement Cost" coverage is included, unless you specify it is not needed.
Replacement cost insurance coverage provides you with the necessary funds to build
your home at today's costs, as it was at the time of the peril. So you will have
the money you need to rebuild your home as it stands today.
Homeowners policies also give you some additional coverage for structures not attached
to your home, such as garages, sheds, workshops, swimming pools, patio furniture,
Unlike other types of insurance, replacement cost insurance does not depreciate
your property of contents values. Every covered item that needs to be replaced will
be treated as if it were brand new.
Loss of Use
In the event you could not live in your home after an insured peril occurs, the
homeowners policy offers payment of temporary living quarters while you are waiting
for repair work to be completed. You would also have additional expenses such as
food and laundry paid for as well.
Another included coverage is for bodily injury medical payments to a non-policy
holder. Medical payments can be made to others (those not in your immediate family)
up to the stated limit amount. This will often prevent going to court to see whose
"fault" it was. The amount paid will cover many minor accidents regardless of who
The homeowners policy also covers claims for bodily injury or property damage for
which you are legally responsible. This normally excludes auto and business related
claims. You would be covered up to the stated liability limit for each accident.
Examples would be:
- Your dog bites the neighbor
- You injure someone in a hunting accident
- Your child breaks someone else's window with a baseball
- Someone is injured on your premises