Home Insurance: Your Questions Answered

Home insurance coverage is complex and small details are often overlooked. As an insured you may have multiple questions and concerns when it comes to being properly insured.

Below is a list of common questions and answers that homeowners may run into:

Q: What does a basic homeowners insurance policy consist of?

A: A homeowners insurance policy consist of coverage for your property (dwelling structure), personal belongings (content), personal liability, medical expense, additional living expense and coverage for detached structures. You can find more information here.

Q:Why is the replacement costs more or less than the market value of the home?

A: The replacement value consist of the costs it will take to rebuild your home in the event of a total loss. It also includes the removal of structure and debris to do so. Your market value determines how much you can sell the home for.

Q: Is my $10,000 baby grand piano covered?

A: It depends on your policy endorsements. Chances are you need to add the piano as scheduled property. You typically need a sales receipt or current appraisal to do so.

Q: If my house burns down will the insurance company give me a check for the total amount of my personal property?

A: No. You will need to provide a list of property located in the home at the time of loss. Sometimes you are required to go buy it new and then your reimbursed. I would keep an up to date list of items, pictures of expensive items and videos as well. Keep those stored in a email, at your office or bank vault.

Q: What discounts do I qualify for?

A: Depends on your situation, but make sure to insure your vehicle and life insurance policy at the same company. You can also get discounts for alarm, claims free, age of home, age of customers and more.

Q: Does my policy cover my roommates belongings?

A: Chances are it does not. Your roommate is encouraged to carry his/her own policy covering their belongings.

Q: How do they determine replacement cost coverage?

A: Replacement cost coverage is determined based off characteristics of the home itself such as, but not limited to: age, square feet, bedrooms, bathrooms, materials used to build inside and out, etc.

Q: What if I run a business from my home or have a home based business?

A: Depending on what type of business your run from your home, most companies have endorsements that can be added to the policy to protect your business liability and property to a certain extent.

For more detailed explanations specific to your exact policy, contact your insurance agent or company.