Home Insurance Coverage

Protection for Your Largest Investment

Do I really need home insurance?

home insurance coverage

Home insurance coverage is essential, heck it's mandated by the terms of your mortgage, and you’ll get hosed without it. Without homeowners insurance, each time you have that family barbeque, or light that romatic candel, you put your finances at risk. You may as well put your pin number right on your ATM card if you're willing to take thest types of risks. Could get bumpy!

Just in case you’re still not convinced, here are three other totally reasonable arguments for the intrinsic worth of home insurance:

  • That cute kid you tuck in every night has lots of small toys, and those toys are tons of fun to watch circle the toilet and head down the drain. Each time this happens, you run the risk of a large water back-up that could cost you thousands of dollars. (Psst - This really happened. ).
  • Wind and hail are the two largest contributors to home insurance claims, if you live in California you know this all too well, and those in Colorad to Texas are combating the damage from hail each year. If it's out of your control, you should make sure you have homeowners insurance to create added protection.
  • Approximately 5.3% of all insured homeowners filed a claim in 2016, that's about 1-in-19 homes. The average home insurance claims costs $11,600, so that's a real risk for the self-insurer. You don't want to be all "hakuna Matta" with your personal finances, this is one you want to take seriously and get a good insurance company partner.

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What Exactly is Home Insurance?

Here’s Merriam-Webster’s definition:

An agreement in which a person makes regular payments to a company and the company promises to pay money if the person is injured or dies, or to pay money equal to the value of something (such as a house or car) if it is damaged, lost, or stolen.

But we think we can do better:

Insurance* (noun) (*This Definition Written In Plain English): A deal between you and a company: You pay them a set monthly amount. In return, the company promises to pay for possible future damage, injury, or loss. In other words, because you know the unpleasant-but-undeniable stats about accidents (more on that in a minute), you pay a small chunk each month to cover them, instead of paying for the whole thing after the fact.

Insurance insiders are always thinking about risk. The reality is, getting out of bed each day opens the doore to a new set of risks each day. For homeowners, not only are there real danagers, but they can be exppensive. Based on 2016 data, 5.3% of all homeowners will file a claims, that's 1 in 19 homes that will suffer some form of loss. And these losses aren't cheap, they will cost an average of $11,600 to repair or resolve. Think about that. 1 in 19 isn't insigificant, and it's all too real for the 5.3%. If you knew you’ll almost certainly have a home insurance claim, you would buy insurance. Now that you knoow that the odds are good enough, should you buy or update your policy today?

With homeowners insurance, instead of you having to pay for the damages from a covered loss or act of nature (hello, hail!) from your not-super-deep pockets, your insurance company does. This is one of those no-brainers. All you have to do is poney up a reasonable monthly payment (or premium), pool up your resources a lot of other policyholders, and when that loss happens, the insurance company can pull the money out of thier much deeper pockets.

The Four (4) Basic
Elements of Home Insurance

  • The dwelling coverage is for the physical structure of the home being insured. it's shown frequently on your policy declarations as "Coverage-A" and forms the basis for may of the limits of other coverages on your policy. "Coverage-B" is also a form of dwelling coverage, but is only for those structures that aren't attached to the primary dwelling (eg. detached garage).

  • Personal property coverage is for items like furnishings, clothing and audio/visual equipment. Some personal items, like jewelry and firearms, have special sub-limits that may not be adaquote for the replacement of your items, so you'll want to ask about the sub-limits if you have expensive things. For personal poperty in excess of the sub-limit, you'll need to itemize them or purchase a Personal Article Floater.

  • If you are displaced from your home as the result of a covered loss, this form of coverage is used to pay for additional living expenses used to furnish temporary housing. Some policies offer this for a number of months (actual loss sustained) or with a limit.

  • This coverage provides personal liability protection for accidents that may happen to guests in your home or on your property.

The Six (6) Primary Home
Insurance
Coverage Sections

  • Dwelling Coverage

    One of the basic home insurance coverages found on your homeowners insurance policy is dwelling protection, this coverage helps protect the structure of the home in which you live, as well as other structures that are attached to it, such as a garage or a deck, against certain risks.

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    Other Structures Coverage

    Most home insurance policies also include coverage for other structures that are on your property but separate from your home, like a detached garage, tool shed or fence.

  • Personal Property Coverage

    Home insurance doesn't just help cover damage to your home. It may also provide coverage for the personal belongings you keep within it. Suppose your electronics are stolen from your home or your furniture is damaged by a fire. Personal property protection may help pay to repair or replace your belongings if they are damaged or destroyed by a covered loss. You may be able to purchase extended coverage for items such as jewelry, watches and furs that have values above the policy limits.

  • Loss of Use Coverage

    Loss of use coveage is a standard part of most homeowners, condo and renters insurance policies. It helps pay for increased costs you incur if you are temporarily unable to live in your home due to a covered loss.

  • Personal Liability

    A typical homeowners insurance policy provides liability coverage when someone not living with you is injured while on your property. Suppose a visitor trips over your broken porch step. Liability coverage may help pay for your resulting legal expenses or the associated medical bills if you are found at fault.

  • Medical Payments

    Medical Payments coverage is designed to pay for medical expenses to others who are injured on or in an insured. These payments are not based on the law of negligence; that is, no negligence on the part of the insured has to be proven for payment to be made.

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