Homeowners insurance protects your home as well as you, your family and your household possessions. A homeowners policy has provides two different types of coverage:
- Property Insurance - covers damage to structures and possessions.
- Personal Liability - covers any costs that you have to pay another as a result of the activities of you, your family or your property. This includes medical expenses.
- Fire & Lightening
- Wind Storm & hail
- Explosions
- Riot or Civil Commotion
- Aircraft
- Vehicles
- Smoke
- Theft
- Falling objects
- Weight of ice, snow & sleet
- Damage to pipes & condits due to freezing
One of the most common types of coverage is:
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Replacement Coverage - The cost of replacing an item without deducting for depreciation. For example, if your 7-year-old TV was damaged in a fire, you would be compensated for the cost of a new TV set with similar features. |
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Replacement Value is not necessarily the same as market value. For example, the market value of your house is usually more than the replacement value. Why? Because the market value includes the cost of the land which usually doesn't need to be replaced. |
You can purchase additional insurance, called a floater or endorsement, to cover your valuable personal property that is kept in your home. A floater is an all-risk policy-unlike your homeowners insurance which typically covers only those specific perils that are named in the policy. An all-risk policy covers against everything except what is specifically excluded in the policy.
Examples of items that are often covered by floaters include antiques, fine art, jewelry, silverware, and crystal.
