Homeowners Insurance

Homeowners Insurance is also referred to as hazard insurance and may include various personal insurance protections such as protection from a loss which occurred to one’s home including its contents, buildings on the property like a garden gazebo or storage shed, loss of use (additional living expenses), and liability insurance for accidents that may happen at the home.

Homeowners Insurance FAQs

Q: Why is homeowner’s insurance important?
A: Homeowners insurance offers protection in two ways – by covering your property and covering any personal liability.

Q: What should I know before purchasing homeowner’s insurance?
A: You should make a proper assessment of the personal property and personal liability coverage you will need and determine the coverage that will best suit your needs. There are also additional endorsements you may want to add to your policy.

Q: What is the difference between “actual cash value” and “replacement cost”?
A: “Actual cash value” is when a policy owner is entitled to the depreciated value of damaged property. ”Replacement cost” will reimburse the amount necessary to replace the damaged item with a similar item at current cost.

Q: How is personal property is covered?
A: You will find named perils that are covered in Coverage C of a standard homeowner’s policy.

Q: Is earthquake coverage necessary?
A: If you live in an area that is prone to earthquakes, an earthquake endorsement is advised. Standard homeowners insurance will not cover damages from earthquakes or other earth movement-related damages like landslides.

Q: Why should I purchase flood insurance?
A: Flood insurance is recommended if you live in a flood plain as determined by U.S. Government Flood Maps. As with earthquakes, damage to property from flood waters is not covered by standard homeowner’s insurance policies.