Understanding Your Homeowners Policy

Reading a homeowners insurance policy for the first time can be intimidating. With all the exclusions, and conditions you’ll encounter, you may start thinking that Mom was right…you should have gone to law school after all. That’s where we come in, all homeowners policies share certain common elements and follow a recognizable design. Once we explain, you’ll be able to make sense of the provisions and locate key information when you need it.

A homeowners insurance policy protects you from certain home related property and liability risks. It covers your home, other structures on your property, and your personal property (e.g., furniture, jewelry, clothing, computer equipment) if damaged, destroyed, or stolen. If other people suffer bodily injury or property damage through your negligence, your homeowners policy may also cover their liability claims, medical expenses, and other damages.

Section 1 of your Homeowners Declarations Pages focuses on Dwelling/Property Coverage. There are basically 4 categories of property coverage:

1. (Coverage A) – Coverage of your dwelling (We only quote & write policies with Full Replacement Cost-This is the amount needed to replace or rebuild your property or repair damages using similar materials to what you had before).
2. (Coverage B) – Coverage of other structures on your property (unattached to house).
3. (Coverage C) – Coverage of your personal property
4. (Coverage D) – Coverage for the loss of use of your property (When the dwelling becomes uninhabitable, the cost of additional living expenses is covered. Reimbursement of additional living expenses covers the cost to the insured for maintaining a normal standard of living).

Section 2 of your Declarations Pages focuses on Personal Liability & Medical Payments

1. (Coverage E) – Coverage of Personal Liability (friend falls on your property, dog bites, etc.).
2. (Coverage F) – Coverage of Medical Payments (To others)

Read your policy. Don’t just put it away in a file cabinet until it’s needed. You should understand your rights and responsibilities before a loss occurs. If any part of your policy is unclear, please call us and ask. We want to make sure you understand your policy in full.