Home Insurance
What is Home Insurance?
Home insurance, also known as hazard insurance or homeowner's insurance (often abbreviated as HO1 in the US real estate sector), is a type of property insurance that protects private residences. This policy combines various personal insurance protections, covering losses to the home, its contents, additional living expenses, and personal belongings, as well as liability insurance for accidents occurring at the home or due to the homeowner's actions within the policy's coverage area.
Typical Home Insurance Coverages
- Section I — Property Coverages
- Coverage A – Dwelling:Covers the value of the home itself (excluding land). A coinsurance clause usually requires that the dwelling be insured for at least 80% of its actual value, allowing losses to be adjusted at replacement cost up to policy limits, providing a buffer against inflation. Renter's insurance (HO-4) typically does not include Coverage A.
- Coverage B – Other Structures: Covers structures on the property not used for business, limited to 10% to 20% of Coverage A, with options for additional coverage.
- Coverage C – Personal Property:Covers personal belongings, with limits on theft and loss of specific items (e.g., $200 for money). Coverage typically requires 50% to 70% of Coverage A, which can lead to over-insurance for some consumers.
- Coverage D – Loss of Use/Additional Living Expenses: Covers costs related to additional living expenses (like rental costs) if part of the home is rented.
Additional Coverages: These may include expenses for debris removal, reasonable repairs, damage to trees and shrubs for specific named perils, fire department charges, identity theft, loss assessment, and building additions, varying by policy.
Exclusions: An open perils policy will specify exclusions, often including earth movement, water damage, neglect, war, and mold damage that occurs over time. Flood damage is typically not covered under standard homeowners or renters insurance, but separate flood coverage is available.
Section II — Liability Coverages
- Coverage E – Personal Liability: Covers damages for which the insured is legally responsible and provides a legal defense at the insurer's expense, with a significant portion of claims arising from dog bites.
Contact us for more information about the right homeowners insurance for you.
Boat Owners Insurance
What is Boat owners Insurance?
This type of insurance encompasses all motorized watercraft, including but not limited to fishing boats, pontoon boats, yachts, and jet skis.
Boating Insurance Coverages:
- Liability Coverage:Covers injuries and property damage to others resulting from a covered accident for which you are found legally liable. This may also include pollution liability and wreckage removal, depending on your policy.
- Collision Coverage:Provides financial protection for damages to your boat, motor, trolling motor, trailer, and some permanent and portable boating equipment resulting from a collision with another boat or object.
- Comprehensive Coverage:Protects against damages to your boat, motor, trolling motor, trailer, and certain permanent and portable boating equipment caused by events other than collisions, such as fire, theft, or storms.
- Uninsured or Underinsured Boater Coverage: Offers coverage for damages and bodily injuries sustained by you and your passengers in a covered accident involving an uninsured or underinsured boater, and in some cases, a hit-and-run boater.
- Medical Payments:Covers medical expenses for injuries incurred by you or your boat passengers while operating or occupying your boat.
- On-Water Towing and Labor Coverage:Pays for towing expenses and other emergency services up to specified limits if your boat becomes disabled while on the water.
- Fishing Equipment Coverage:Provides specific coverage for damage to fishing equipment while on your insured boat or while being transported on or off your insured boat.
- Personal Effects Coverage:Covers the replacement cost for damages or losses of your personal property while on board your insured boat or while being transported on or off of it.
Contact us to learn more about the right boat insurance for your needs.
Renters Insurance
What is Renters Insurance?
Renters' insurance is a policy that offers many of the same benefits as homeowners' insurance, including liability coverage. It protects a tenant's personal belongings against specific risks such as fire, theft, and vandalism. However, it does not cover the building itself, which is the landlord's responsibility, except for minor alterations made by the tenant.
How Much Renters Insurance Do I Need?
The cost of renters' insurance and the necessary coverage for personal property depend on the total value of your belongings. To assess your coverage needs, consider these questions:
- What is the total value of my possessions?
- Could I afford to replace everything if it were damaged or stolen?
- How would I handle a liability lawsuit against me?
If you’ve ever wondered, "Do I need renters insurance?" the likely answer is yes.
Contact us to find out more about the right renters' insurance policy for you.
Flood Insurance
What is Flood Insurance?
Flood insurance is a specialized insurance policy that protects against property loss due to flooding. Insurers typically assess risk factors for specific properties by examining topographical maps that highlight lowlands, floodplains, and floodways vulnerable to flooding.
More About Flood Insurance
Nationwide, only 20% of American homes at risk for floods have flood insurance. Most private insurers avoid covering flood risks due to adverse selection, which occurs when those most affected by flooding are the ones purchasing insurance.
The National Flood Insurance Program defines flooding as a general and temporary condition where two or more acres of normally dry land or two or more properties (one of which must be your property) experience partial or complete inundation from: overflow of inland waters, rapid accumulation or runoff of surface waters from any source, or mudflows.
Flooding can be caused by landslides, hurricanes, earthquakes, or other natural disasters. While a homeowner may have earthquake coverage, it often does not extend to flood damage resulting from earthquakes.
Contact us to learn more about the appropriate amount of flood coverage for your home.
Landlords Insurance
What is Landlords' Insurance?
Landlords' insurance is a policy designed to protect property owners from financial losses associated with rental properties. This insurance typically covers the building itself, with the option to insure any landlord-owned contents within it. While often referred to as buy-to-let insurance, this is a specific type of landlords' insurance. It's important to differentiate between buy-to-let insurance, which generally covers a single property purchased with a buy-to-let mortgage, and multi-property insurance, which covers two or more properties. Each type of landlords' insurance offers different coverage.
What is Usually Covered With Landlord Insurance?
Landlords' insurance policies typically cover standard risks such as fire, lightning, explosion, earthquakes, storms, flooding, water or oil escape, subsidence, theft, and malicious damage. Coverage varies between policies and may not include all of these risks. Optional coverages can include accidental damage, tenant malicious damage, terrorism, legal protection, alternative accommodation costs, contents insurance, rent guarantee insurance, and liability insurance.
Generally, landlords' insurance policies do not cover personal property belonging to tenants, nor do they protect tenants' interests; however, a liability policy for the landlord or property manager can benefit tenants if they suffer a loss for which the landlord is responsible.
Contact us to learn more about the right landlords' insurance policy for your property.