What is Home Insurance?

Home insurance, also known as homeowners insurance (HO1) or hazard insurance, is a type of property insurance that helps protect your private residence. It’s an insurance policy that covers the following:
  • The structure of your home
  • The contents of your home
  • Loss of use (including additional living expenses)
  • Burglary
  • Liability insurance

Typical Home Insurance Coverages

Section I – Property Coverage

Coverage A – Dwelling

Coverage A protects the value of the home itself (except for the land). There may be a coinsurance clause that states that as long as the dwelling is insured for up to 80% of its actual value, losses will be an adjustment at replacement cost (up to the limits of the policy)

Coverage B – Other Structures

Coverage B offers coverage of the structures around the property that aren’t used for business purposes. It’s typically limited to 10-20% of Coverage A with additional amounts that may be available through endorsement.

Coverage C – Personal Property

Coverage C offers coverage for your personal belongings. However, it’s limited only to the theft and loss of certain kinds of items. This policy usually requires 50 to 70% of coverage A, which means you can choose to pay more coverage than necessary.

Coverage D – Additional Living Expenses/Loss of Use

Coverage D provides coverage for expenses related to additional living expenses and fair rental value (when part of the residence was rented). However, only the rental income for the actual rented space and not the services (like the utilities) are covered.

Additional Coverage

Property coverage may cover various expenses like debris removal, damage to trees and shrubs, reasonable repairs, fire department changes, credit card/identity theft, removal of property, collapse, landlord’s furnishing, and some building additions.

Exclusion

An open perils policy has a specific exclusions section that you should read and understand.
  • These typically includes water damage, earth movement, neglect, war, power failure, septic tank backup expenses, intentional loss, nuclear hazard, and concurrent causation.
  • In concurrent causation exclusion, it excludes losses that happen to both covered and excluded loss.
  • Aside from that, property insurance may not cover increased expenses due to local ordinance.
  • Also, mold damage may not be covered.

Flood

In a standard home insurance, flood damage is not covered. Flood coverage is a separate policy that you need to purchase from National Flood Insurance Program (NFIP) and private insurers.

Section II – Liability Coverage

Coverage E – Personal Liability

Coverage E protects you from damages that you are legally liable. It also provides financial protection from lawsuits filed against you by a third party.
 

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

Contact Us About Home Insurance:

(386) 218-4951
1810 S Volusia Ave Ste D
Orange City, FL 32763
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