Homeowners Insurance is a package of coverages divided into two sections: Property & Liability.
The Property Section includes the following coverage:
Dwelling Coverage: Covers your home and any structure attached to it for all risks of loss except the risks of loss the policy specifically excludes. Coverage is excluded for a number of causes of loss, which include but are not limited to flood and earthquake. Coverage typically guarantees full payment to repair or replace your home if it is damaged by a covered peril such as fire, explosion wind etc...
Other Structures: Covers structures on your property completely detached from the dwelling such as a detached garage, shed or gazebo. The limit for other structures is usually 10% of the dwelling limit.
Personal Property: Covers your personal property anywhere in the world. The limit for this coverage is usually 50% to 70% of the dwelling limit. Coverage is limited to 10% of the personal property limit when kept at second residence. The policy covers just the causes of loss listed unless the policy is endorsed to include the all risk coverage described in the dwelling coverage above. Losses are settled at cost to repair or replace minus depreciation unless a replacement cost coverage endorsement is added to the policy. The policy also includes sublimits or maximum limits on certain classes of personal property such as jewelry, furs and silverware. These sublimates are generally no more than $5000, which may require endorsements scheduling values in excess of these sublimits.
Loss of Use / Additional Living Expenses: Covers the additional expenses you have if your home is made uninhabitable due to an insured cause of loss such as fire, explosion etc.. This can include the cost of a hotel or the cost to rent another home during repairs.
The Liability section includes the following coverage:
Personal Liability: Covers you if someone claims that you accidentally damaged their property or caused them bodily injury. The policy excludes accidents arising out of autos, aircraft, all but the smallest of watercraft, and accidents arising out of your business. Some policies include and all can be endorsed to include personal injury suits arising from: libel & slander, assault & battery, false arrest, invasion of privacy. This coverage is very modestly priced and limits should be at least $300,000 or $500,000. A $1,000,000 umbrella excess of these limits should be considered.
Medical Payments: Covers for necessary expenses caused by an accident to any person other than a family member or a domestic employee of yours eligible for Workers Compensation Insurance.
If the coverage described does not meet your needs there are many endorsements available that can broaden the coverage. Please call us so we can tailor coverage to your special needs.
ACTUAL COVERAGE CAN ONLY BE DETERMINED BY SPECIFIC POLICY WORDING. THE ABOVE IS NOT DESIGNED TO REPRESENT COVERAGE PROVIDED BY ANY SPECIFIC INSURANCE COMPANY POLICY