Personal Homeowner/Dwelling

       Homeowners insurance is one of the most popular forms of personal lines insurance on the market today. Almost anyone who owns or leases property has a need for this type of insurance. And many times, homeowners insurance is required by the lender as part of the requirements in obtaining a mortgage.

      Homeowners insurance comes as a package policy that covers the cost of repair or replacement of your property. It also covers liabilities for any injuries or property damage the policyholder and members of their family (including household pets) cause to other people.

       Homeowners insurance also typically pays for additional expenses related to home damage. Damages caused by most disasters like fire, theft, and storms are covered but there are exceptions such as floods, earthquakes and poor maintenance. There are separate policies for earthquake and flood insurance. Maintenance of the property is the policyholder’s responsibility.

 The typical homeowner policy has two main sections:

• Section I covers the property of the insured
• Section II provides personal liability coverage to the insured.

Policy limits (i.e., coverage limits) in the standard homeowners policy
[Note: based on the Insurance Services Office's HO-3 policy]

Coverage A provides protection to the dwelling on the premises up to the policy limits.

The policy limit for Coverage A is set by the policy owner at the time the insurance is purchased. This is the amount the insurance company will pay to have your home or dwelling rebuilt in the event of a covered cause of loss.

Determining the cost to rebuild your home and appurtenant structures is something that should be discussed with an agent who specializes in homeowners insurance. Professional Insurance utilizes two software packages to determine the replacement cost of your home. There are several factors that will determine the homes cost to rebuild.

• Location, what city is the home located in.
• Square Footage.
• Roof type.
• Design of home, custom vs. tract home.
• Foundations, the shape and soil conditions.
• Number of floors.
• Number of rooms.
• Number of Chimneys.
• Number of bathrooms.
• Interior flooring and covering material.
• How many cars the garage will hold. etc.

So make sure you have all the information about your home ready when it comes time to determine your homes cost to rebuild.

Coverage B provides protection to other structure on the premises, the policy limit for Coverage B is usually equal to 10% of the policy limit on Coverage A.

Coverage C covers losses to the insured's personal property. The policy limit on Coverage C is usually equal to 50% of the policy limit on Coverage A.

Coverage D covers the additional expenses that the policy owner may incur when the residence cannot be used because of an insured loss. The policy limit for Coverage D is usually equal to 20% of the policy limit on Coverage A. This covers extra costs to rent a hotel room, set up utilities etc.

The coverage limit on Coverage E - Personal Liability - is determined by the policy owner at the time the policy is issued. Liability options are usually $100,000, $200,000, $300,000, $500,000 and $1,000,000. It is best to discuss with an agent how much liability insurance to buy.

The coverage limit on Coverage F - Medical Payments to Others - is usually set at $1000 per injured person.

       The Dwelling Policy (DP) typically insures one-family to four-family dwellings, whether owner-occupied or tenant-occupied. Dwelling Policy’s coverage is normally more restrictive than the coverage offered by homeowner policy. Unendorsed DP forms do not cover theft, liability, or medical payments. Theft and liability coverage are available by endorsement. The insured under an ISO dwelling policy may choose the coverage he wants and delete unnecessary coverage.

       Dwelling policy may also insure permanently located mobile homes and trailer homes, houseboats, some incidental business occupancies, and it may insure dwellings that do not meet HO underwriting requirements.

Please contact us for homeowner policy or dwelling fire policy quote.