Home Insurance
Home insurance, or homeowner's insurance (HOI), is insurance that covers private homes.
The policy combines various personal insurance protections, which may include the structure and contents of the home, loss of its use,
or loss of other personal possessions of the homeowner.
It may also include liability insurance for accidents that may happen at the home.
If a home is on mortgage, most of the banks require the home owner to purchase homeoenwe insurance.
Standard coverages of homeowner insurance divide into 5 categories:
Coverage A - Structures
Covers the value of the house itself, exculding the land.
Typically, a coinsurance clause states that as long as the dwelling is insured to 80% of actual value, losses will be adjusted at replacement cost, up to the policy limits. This is in place to give a buffer against inflation. HO-4 (renter's insurance) typically has no Coverage A, although it has additional coverages for improvements.
Coverage B – Other Structures
Covers damages other than the house itself, such as the detached garage, fences, except those used for business purposes.
This type of coverages usually do not cxceed 10 to 20 % of Type A Coverage.
Coverage C – Personal Property
Covers personal property, including household contents, personal or family belongings.
Coverage D – Loss of Use/Additional Living Expenses
Covers expenses associated with additional living expenses when covered loses incurred, such as rental expenses.
Coverage E - Personal Liability
Covers personal liability, protecting you against claims arising from accidents to others. This coverage is an all purpose liability policy that follows you wherever you go, with a few exceptions.
Coverage F - Medical Expenses
Covers medical expenses, which is usually limited to an amount based on per person and per accident.
Additional Coverages
Covers a variety of expenses such as reasonable repairs, fire department changes, removal of property/debris, among others.
Exclusions
Earth movement, water damage, power failure, neglect, war, nuclear hazard, intentional loss, and concurrent causation are generally excluded
in the homeowner insurance policy. Special insuance, such as flood insurance, can be purchased separately.
Documents Required:
1. Your personal info
2. The info about the house to be insured
a. Type of the contruction
b. When the house was built
c. The location of the house
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