Definition of Homeowners’ Insurance
Homeowners’ insurance is defined as a special and specific type of property insurance. Homeowners’ insurance covers loss or damage by against perils which can include lightning, smoke, hail, fire, wind, and storm damage. It also usually insures the owner for death or accidental injury for which the owner may be legally liable or responsible. Banks or Mortgage lenders will almost always require homeowners’ insurance as part of the conditions of obtaining a mortgage and keeping it from defaulting. If you do not maintain the homeowners’ insurance during the term of the mortgage the bank or mortgage company will put what is called a forced place policy on the property to protect its asset. Remember the bank or mortgage company owns the house just as much as you do. They will then bill you monthly for the forced place insurance policy with your mortgage payment and it is not cheap.
If you suffer a loss of any kind you should always consult with a public adjuster. What is a Public Adjuster? A Public Adjuster is your representative in the insurance claim who will protect you and make sure the insurance company treats you fairly. Experienced Public Adjusters has a team of highly trained, knowledgeable, and skilled adjusters willing to provide you a free onsite evaluation of your claim and guide you through the process alleviating the burden and the stress of a claim on an insured and their family.
Call an Experienced Public Adjuster from the very start!
The standard homeowners’ insurance policy is divided into separate coverages that are afforded to the insured or homeowner:
- What is Coverage A? It is the main structure, home, or called dwelling.
- What is Coverage B? This is coverage to other structures on the property like a detached garage, shed, fence, or gazebo.
- What is Coverage C? Coverage C is coverage granted for damage or theft to your personal property or contents. For example, this would include items not considered fixtures like a couch, television, washer, dryer, bedroom set, clothes, jewelry, etc…
- What is Coverage D? Coverage D is called Loss of Use or Additional Living Expenses. It is coverage for when the home or structure is no longer livable after suffering a covered loss. It is set aside by most policies to cover costs in addition to what it would normally cost you to live before suffering the loss. For example, it would cover your stay in a hotel during emergency mitigation or housing until the home was repaired. It would also cover additional food expenses if you were staying in a hotel. This would be the cost in addition to what you normally would spend for your family to eat each week.
- What is Coverage E? Coverage E is Personal Liability Insurance.
- What is Coverage F? Coverage F is Medical Payments to Others
- What are Additional Coverages or Endorsements? They are specific to policy and requests at the time of purchase.
- What are Exclusions? This very specific language in a policy is to be used to not grant or afford coverage for certain types of losses. For example, many HO6 policies will have exclusions for maintenance wear and tear, surface water (Flood), or groundwater.
While Homeowners’ Insurance usually is specific to the insurance of a house, it also can cover and provide the insurance for other types of structures where people reside including home rental policies including tenants (renters), homes within Homeowners associations, and condominium owners.
Reading insurance policies can be a difficult task. Understanding them in order to make sure you are processing a claim properly and getting paid properly for what they owe you is even more daunting.