Types of Home Insurance

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If you own a home, you need homeowner’s insurance to protect one of your largest financial investments. Homeowner’s policies are designed to provide financial protection in the event of damage to your home, such as fire or water damage. Your policy will also protect your personal property, such as furniture that is damaged as a result of a fire, or the theft of electronic equipment. In addition you will be protected from liability as a result of homeownership, such as a visitor who slips on your icy steps and breaks an arm.

The standard homeowner’s policy covers the following:

• The physical structure of your home, permanent structures on your property, and your personal property;
• Personal liability exposures that arise from being a homeowner;
• Additional costs that you may incur as a result of a covered loss, such as fire to your home that makes your home uninhabitable.

The homeowner’s policy that you purchase determines which perils you are insured against. Most homeowner’s policies are written under the HO-3 contract form. Form numbers are standardized in the insurance industry. So if you purchase HO-3 insurance, you'll get the same coverage regardless of your insurance provider. The HO-3 contract form provides coverage for the following:

• Broad coverage for your dwelling. Damage to your dwelling from most causes is covered unless it is specifically excluded.
• Damage to your personal property for "named perils" only. Your personal property is covered only against the perils specified in the contract.
• Limited coverage for jewelry that is stolen. Coverage is usually $500 to $2,000, depending on your state of residence. Most policies don't cover jewelry that is lost.

Endorsements Provide Additional Coverage

You can purchase additional coverages through endorsements to your policy. These coverages may be for items such as jewelry, furs, firearms, gold or silverware. For example, if you were seeking additional protection for your jewelry, you may purchase endorsements that provide:

• Additional coverage for you jewelry beyond the amount covered in a standard policy.
• An increase in the perils insured against, for example, a misplaced piece of jewelry, or a stone that falls out of a setting.
• No deductible before losses for jewelry are covered.

You may add other coverages to your homeowner’s policy to reflect your specific needs. Please contact us to discuss these coverages. We encourage you to review your policy and call your insurer if you have questions about your coverage.