What is Dwelling Fire insurance?
- This policy provides property coverage for a dwelling and its contents in case of fire. It is often used to insure a second property such as a camp, or is purchased by those unable to afford or qualify for a traditional homeowners policy.
Do I need separate Flood insurance?
- Standard homeowners policies do not cover water damage resulting from a flood, surface water, waves, tidal waves, overflow of body of water or spray from any of these. You must purchase a separate flood policy. There is a 30-day waiting period between the time the policy is purchased and the coverage goes into effect.
What types of Homeowner Insurance coverage should I consider?
- Homeowners – This refers to a group of polices designed to cover your home and personal belongings against loss and provide you with liability protection for injuries sustained by a second party. Along with houses, coverage forms are also available for renters, condominium and townhouse owners, and mobile home owners.
- Loss of Use – This covers expenses you might incur in living elsewhere while your home is being repaired following an insured loss.
- Medical Payments – This coverage pays the medical expenses of individuals resulting from an accident that you caused.
- Other Structures – This refers to structures on your property other than the dwelling itself, such as a garage or storage shed. Coverage is included in your homeowners policy.
- Personal Liability – This provides coverage if a claim is made or suit is brought by an injured party because of bodily injury or property damage caused by a covered occurrence.
- Personal Property –This coverage reimburses you for personal property that is damaged, lost or stolen.
- Underlying Limits – “Underlying Limits” are the basic liability limits covered by a standard auto or homeowners policy. You can obtain higher limits by purchasing an umbrella policy. However, before you do so you must have minimum liability amounts on your standard policy. Minimums vary among insurers, but are usually $250,000 per person and $500,000 per occurrence on bodily injury liability, and $100,000 for property damage liability under an auto policy. Personal liability insurance limits must be at least $300,000 under a homeowners policy. If you have a watercraft liability exposure, you are usually required to carry at least $300,000 in liability coverage.
- Self-Insured Retention –The self-insured retention is the amount of the loss you pay before an umbrella policy responds. It only applies if a loss is excluded from coverage under the primary policy, but not under the umbrella policy.
What is a Tenant Homeowners policy?
- This is a form of homeowners coverage for renters. It protects personal property much like a homeowners policy and provides similar personal liability coverage. The actual dwelling is not covered because as a renter you do not own it.