Types of Home Insurance
For those who need to save money
- Actual Cash Value
- Other Structures: 1%*
- Personal Property: 25%*
Loss of Use
- Personal: $100,000
- Medical Payments: $1,000
For the average person
- Actual Cash Value & Some Matching
- Water-Backup Protection
- Other Structures: 10%*
- Personal Property: Replacement Cost
Loss of Use
- Personal: $200,000
- Medical Payments: $2,000
For those who worry or have a high net worth
- Matching & Additional Replacement Cost
- Water-Backup Protection
- Other Structures: 50%*
- Personal Property: Replacement Cost & Special Items Coverage
Loss of Use
- Personal: $300,000
- Medical Payments: $5,000
- Personal Injury
*Percentages are of the replacement cost of the dwelling
Pays for property damage and injury costs to others on your property or adjacent. Pays for legal defense costs as well, if you get sued.
Covers medical bills for those who are injured on your property. The difference between personal liability coverage and this, is the medical payment limit will be used before the personal limit. The personal limit may not be used at all unless the injured sues the insured.
Personal Insurance Protection
This Pays for damages to someone's name including:
- Defamation of name
- False arrest
- Malicious prosecution
- Publication that violate's privacy
- Wrongful conviction
Protects your home business from liability charges. Examples of home businesses could include daycare, renting on airbnb, dog sitting.
Your home and anything attached to it. The dwelling limit is the cost to reconstruct it is the value insurance companies use for your home. This can vary greatly from the market value (how much you bought it for). The cost to reconstruct it includes electrical wiring, plumbing, and anything else needed to duplicate the structure.
Examples of attachments: Attached garage, awning, ceiling fan, towel bar, mirrors.
Any structures not atteched to the home. This may include a driveway, fence, and shed.
Additional Replacement Cost
This is an extra coverage you can endorse onto your policy.
Example: If your current home’s reconstruction cost is $300,000 and you had this endorsement at 25% then the insurance company would pay up to $375,000 (300,000 * (1 + 25%)).
Another additional replacement cost you can add is for ordinces & laws. Normal home insurance doesn’t cover the extra cost to build your home to code, so this is a valueable endorsement to have if you have an old unupdated home.
This applies to the roof and sides and is not normally included in home insurance. If hail hit half your roof and damaged only 1/4 of it then the matching endorsement would pay to replace the whole roof instead of just the 1/4 that was damaged.
Property that is not attached to the building. This includes furniture, kitchenware, appliances, electronics, pictures, books, and toys.
Normal Covered Perils include: Fire, Lightening, Wind, Hail, Smoke, Volcanic Eruption, Aircraft, Vehicles, External Explosion, Internal Explosion, Riot, Civil Commotion, Vandalism, Malicious Mischief, Burglary Damage, Weight of Ice, Sleet, and Snow, Glass Breakage, Falling Objects, Electrical Current, Collapse, and Plumbing, Heating, Electric, Air-Conditioning sudden tearing, freezing or accidental discharge of water or steam.
Add the special coverage endorsement to get your personal property coverage to include all perils except for aircraft, earthquake, flood, governmental seizure, intentional loss, nuclear, ordinance or law, and war.
Actual Cash Value
Actual cash value is the value and method used to replace your personal property. The insurance company inventories your lossed personal property and calculates the current value of it (Purchase Price – Depreciation).
This is a coverage you can have instead of actual cash value. Instead of the insurance company only paying the depreciated value of your personal property they will pay the amount it would cost to replace your personal property today.
Special Items Coverage
You can create limits on specific types of items. For example, jewelery, art, firearms, etc. This ensures that the insurance company will pay for a specific group of items on top of paying a general sum of everything which may not add up to the cost to replace your special items.
Loss of Use
In the event that you cannot live in your home, this will pay for expenses incurred outside the homes. Examples of this includes eating out and hotel stay.
An insured will pay up to the deductible amount before the insurance company will pay any money for your policy. A deductible is usually a dollar amount (eg. $1,500) but also can be a percentage of the dwelling limit (eg. 1%- A dwelling limit set at $300,000 would make the 1% deductible $3,000). In some states you may have a seperate deductible for damages from wind and hail.
Normal Exclusions You Can Add
From Sewer backup to water leakage water damage can create a whole lot of problems.
Any damage from a flood or water coming in from the side walls would be covered by flood insurance.
This pays for the cost to replace or fix the sudden breakdown of specific equipment in the home. Equipment includes washer, dryer, dish washer, oven, water heater, refrigerator, air-conditioner, and heater.
Damages caused by utility companies are covered with this endorsement. This can include electrical, gas, and water. Different insurance carriers have different variations of this endorsement.
Any damages caused by an earthquake would be paid for by earthquake insurance. If an earthquake destroys your home, your home insurance would not give you any money without this endorsement.
- Multi Policy
- Green Home
- Home Improvements
- Burglar Alarm
- Fire Alarm
- Smoke Detector
- Sprinkler System
- Smart Home
- Water Sensor
- Automatic Water Shutoff
- Low-Temperature Sensor
- Military / Serviceman
- Married / Widowed
- Gated Community
- Paid in Full
- Early Payment
- Automatic Payments
- Bank or Card Payments
*Different carriers use different discounts