Homeowners insurance is a package policy. This means that it covers both damage to property and liability or legal responsibility for any injuries and property damage policyholders or their families cause to other people. This includes damage caused by household pets. Show Damage caused by most disasters is covered but there are exceptions. Standard homeowners policies do not cover flooding, earthquakes or poor maintenance. Flood coverage is provided by the federal government’s National Flood Insurance Program, although it is purchased from an insurance agent. Earthquake coverage is available either in the form of an endorsement or as a separate policy. Most maintenance related problems are the homeowners’ responsibility. A standard homeowners insurance policy includes four essential types of coverage. They include: 1. Coverage for the structure of the home 2. Coverage for personal belongings Trees, plants and scrubs are also covered under standard homeowners insurance—generally up to about $500 per item. Perils covered are theft, fire, lightning, explosion, vandalism, riot and even falling aircraft. They are not covered for damage by wind or disease. 4. Additional living expenses People who own the home they live in have several policies to choose from. The most popular policy is the HO-3. It provides coverage for the structure of the home and personal belongings as well as personal liability coverage. It also provides the broadest coverage, protecting against 16 disasters or perils listed below.
Owners of multifamily homes generally purchase an HO-3 with an endorsement to cover the risks associated with having renters live in their houses. Other types of policies for home owners are the HO2, which provides more limited coverage, the HO-1, a bare bones policy that is not widely available, and the HO-8, designed for older homes. There is also a version of the HO-2 designed for mobile homes. The HO4-policy was created specifically for those who rent the home they live in. It covers a policyholder’s belongings against all 16 perils. It also provides personal liability coverage for damage the policyholder or dependents may cause to third parties. The HO-6 policy was designed for owners of condominium and cooperative units. It provides coverage for belongings and the structural parts of the condominium or co-op that the policyholder owns. It protects against all 16 perils and provides personal liability coverage. Both cover additional living expenses. There are three coverage options: 1. Actual Cash Value 2. Replacement Cost Some insurance companies offer an extended, rather than a guaranteed, replacement cost policy. An extended policy pays a certain percentage over the limit to rebuild the home. Generally, it is 20 to 25 percent more than the limit of the policy. For example, if homeowners take out a policy for $100,000, they can get up to an extra $20,000 or $25,000 of coverage. Guaranteed and extended replacement cost policies are more expensive; but they offer the best financial protection against disasters for a home. These coverages, however, may not be available in all states or from all companies. Replacement cost coverage is available for the structure of the home, but only actual cash value coverage is available for possessions. Which of the following is covered by coverage C?Items like furniture, computers, TVs, jewelry and even clothes are considered personal belongings and, therefore, are protected under Coverage C of your home insurance policy. The most commonly covered perils include theft, vandalism, fires, hurricanes, tornados and hail.
What is coverage C?Coverage C: Personal Property. Covers damage to, or loss of personal property. Personal property includes household contents and other personal belongings used, owned or worn by you and your family.
Which of the following perils is not covered by a ho 1 policy?An HO-1 home insurance policy does not provide coverage for liability, personal belongings, or additional living expenses — only the dwelling itself.
What perils are not covered?Non-covered perils typically include:. Earthquakes.. Water damage.. Flooding.. Sinkholes.. Sewer backup.. Wear and tear.. Maintenance issues.. |