Frequently Asked Questions

 HOMEOWNERS INSURANCE FAQ's

 As part of our ongoing efforts to help the consumer gain a better understanding of the different types of homeowners insurance and the options provided by homeowners insurance, we’ve compiled a list of homeowners insurance FAQ’s. Here are some of the most common questions we receive about homeowners insurance followed by concise answers:

What is covered in a standard homeowners insurance policy?

A common homeowners insurance policy covers the physical structure of your home, buildings such as unattached garages and other outbuildings, most personal possessions, additional living expenses if you can’t live in your home due to damage caused by a covered peril and have to rent another place, liability protection from bodily injury or property damage caused to other people by you, your family or your pets.

Are there different types of homeowners insurance policies?

Yes, there are different homeowners insurance policies for single-family homes, multi-family homes such as duplexes, people who rent, condominium owners and farm owners. These various types of homeowners insurance policies also may vary according to each insurance company and specific types of coverage that may be added to a policy.

Is flooding covered by my homeowners insurance policy?

Usually, a homeowners insurance policy will not cover damage to your home or possessions caused by floods unless it is written specifically into the policy. Flood insurance is generally sold separately. However, if your home or possessions are damaged by water because the sump pump in your basement fails, that damage may be covered by your homeowners insurance policy.

If I own my own home do I need homeowners insurance?

In the majority of states, homeowners are not required to purchase homeowners insurance policies by law. However, if the purchase of your home is financed by a mortgage, the lender issuing the mortgage will require you to purchase homeowners insurance to protect their investment. Since a home is the single largest purchase that most people make in their lifetime, protecting that investment by buying homeowners insurance is generally recommended.

How much coverage should my homeowners insurance policy provide?

It is generally recommended that a homeowner purchases enough insurance coverage to replace the structure of the home, replace the loss of personal possessions, and pay for living expenses elsewhere in the event that their home is rendered uninhabitable by a fire, storm, or another type of disaster. It is also recommended that a homeowner carry liability coverage in their homeowners insurance policy that is equal to or more than twice the total amount of their assets.

How can I insure valuables that are not covered by my homeowners insurance policy?

While a homeowners insurance policy does provide coverage for most valuables in the home, if the owner has many valuable collectables such as coins, firearms, antique jewelry, musical instruments, art, etc., a homeowner may wish to purchase a personal articles floater, which provides additional coverage for these items.