Home | Site Map | Other | Contact Us

HOME INSURANCE

Terms & Conditions | Privacy Policy

About Insurance

Auto Policy

Home Policy

GCUSA Articles

WHAT IS HOMEOWNERS INSURANCE?

Homeowners Insurance covers damages suffered to your property when caused by a Covered Peril (damage caused by an event covered as listed in your policy). There are a few different forms of coverage to pick from when choosing your home insurance policy. The one with the least coverage is known as a Dwelling Fire, which under its original form covered basically only damage caused to the dwelling due to Fire. Over the years additional coverage has been amended to even the most basic of policies. The highest form you can purchase for home coverage is known as the Open Peril or "All Risk" policy.

What does my Homeowners Insurance Policy Cover?

Your Home Insurance policy is broken down into several coverages. These are:

TYPES OF HOME INSURANCE

HOMEOWNERS INSURANCE:

Homeowners Insurance Policies come in two main flavors, the All Risk and Named Perils Policy. They are intended to cover stand alone homes occupied by the owner.

DWELLING FIRE / LANDLORD POLICY:

This type of policy is intended to cover homes that are occupied by a tenant and owned by someone else. The primary difference between this policy and the regular Homeowners Policy is lack of or limited Personal Property and Personal Liability coverage, since the actual owner of the home would not generally have property on the premisis other than washer/dryer or landscape supplies. Personal Liability can be extended from the owners own Homeowners Insurance policy. However Liability can easily be added to a Landlord Policy.

CONDO / TOWNHOME INSURANCE:

Condo and Townhome policies were created to cover owner occupied dwellings that are duplex or more in configuration. In most cases a Condo-Owners Association would cover the outer shell of the structure and the owner would only have to purchase separate coverage for the internal walls and flooring for the dwelling portion of coverage. The rest of the policy would be basically identical to a Homeowners Policy except for the Loss Assessment Clause which covers events where the entire association is sued for a liability loss and each owner must pick up a portion of the lawsuit.

RENTERS INSURANCE POLICY:

Renters Insurance protects a tenants in the event of loss for personal property and / or personal liability. The renter of a property need not carry coverage for the home they occupy because they have no ownership interest in it. So this policy excludes mainly coverages pertaining to dwelling, land and structures.

COURSE OF CONSTRUCTION POLICY:

Course of Construction Policies specifically cover homes that are either under construction or major rennovation. This type of policy would be most similar to a Dwelling Fire or Landlord Policy. Since the home is not occupied at the time, there is no need for personal property coverage.

UNCOMMON QUESTIONS ABOUT HOME INSURANCE

If I have two homeowners policies on the same house and it burns down, can I get paid for it twice?

No, this is referred to as "Double Indemnity". You cannot be legally paid twice for the same loss. However it is possible to be paid to the limit of one policy and then be paid an additional amount from another policy if the loss exceeds the first policies limit of coverage.

How do I cover my home for Flood?

Flood coverage is sold seperately by insurance companies under a federal program known as the National Flood Insurance Program. This program is administered by FEMA. Coverage for Earthquake is also run under a similar type system. The reason that these two types of coverage are run under governmental programs is that many times they cause massive amount of damage to many houses and the losses can be greater than the insurance companies ability to pay for the claims. So the coverage is backed up by the Federal Government.

I have a roomate that lives in my home, if the house is burglarized, is their personal property covered?

Generally speaking, no. Unless the roomate is added to the policy as a Named Insured or if they are considered a Resident Relative. To ensure that the roomate has coverage, they can purchase a separate policy known as a Renters Insurance Policy. This type of policy is very similar to a home insurance policy except there is limited or no coverage for dwelling and structures.

I'm looking at purchasing a home, however when speaking with my Insurance Agent, he told me that there was a previous water claim on the home due to a burst water pipe in the wall. The rate quoted for my home insurance was extremely expensive because of this. Why?

Water claims have become a very touchy area of concen for many insurance companies. There were some very expensive losses over the last few years related to Black Mold that were the result of a water loss. Many companies now exclude several types of water losses and or limit their liability in the event of one that is covered. Even though it wasnt your home at the time of loss, the possibility of additional problems such as black mold can persist after such a loss has occured. The previous homeowner will also have that claim follow them to whatever home they move to for about 3 years. After the loss is 3 years or more old, you will in most cases, no longer be up-charged for it on your insurance.

Disclaimer: This site is intended for informational use only. All articles and advice posted should be discussed with a licensed insurance professional prior to making any changes or alterations to your insurance policies. Information submitted to getcoveredusa.com quoting services will be kept in confidence and will be exclusively distributed to licensed insurance agents for quoting purposes. Contact information will not otherwise be sold, distributed or furnished to any other person or entity for any reason unless required by law.