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:
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.
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.
An open perils policy has a specific exclusions section that you should read and understand.
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.
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Orange City, FL 32763
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