What does the Home Insurance policy cover?

We will be discussing a homeowner’s policy, not a condo or co-op. We will discuss those type of policies in the future weeks.

​While many home insurance companies offer different coverages based on what the home owners request, there are common parts of all home insurance policies. Let’s cover these common parts as well as some of the additional coverages which can be requested.

Coverage A – Dwelling
This coverage is for the structure itself. This is the coverage to rebuild the building. The four walls exterior and interior, the roof and all the interior components such as the plumbing, the electrical systems and components permanently attached to the structure, such as kitchen cabinets, bathtub, toilet, sinks, flooring, etc.

Coverage B – Other Structures
This coverage is intended to cover other structures that are on the homeowner’s property that are not attached to the actual structure itself. Usually this would be a garage, shed or other detached structure on the premises.

Coverage C – Personal Property
This coverage is intended to cover your personal belongings that are not attached to the structure such as furniture, computer, game systems, jewelry, clothing and art work. There will be limits on such items such as the jewelry and limits. We will discuss this option later.
 
Coverage D – Additional Living Expenses
This coverage was intended to cover additional living expenses for you while you are displaced due to a covered loss in your home. For instance, a hotel room will be paid for while your home is repaired due to a fire. Dining out at a restaurant will be reimbursed since you can’t cook in your own home due to the fire.

Coverage E – Personal liability
This coverage was intended to protect the owner of the property from a and injury claim by others on your property. This coverage can extend beyond your property and can follow you around the world. For example, should someone trip on your sidewalk and claim it was your fault they fell such as a raised sidewalk claim.

Additional Coverage Options available for an additional premium:

1. Replacement Cost Coverage – to guarantee replacement of the building or your personal property.
2. Animal Liability to protect from your pet injuring someone on your property such as a dog bite.
3. Additional Jewelry and art work coverage.  This type of add on usually requires appraisals to be completed to prove the value of the coverage requested on the specific named articles. 
4. Pool Liability – If you have a pool you should always disclose this to your insurance carrier so that they will adjust the risk and raise the premium accordingly so that you will be covered in the event of a loss.
5. Ordinance of Law – Every home policy covers a basic amount of ordinance of law.  This means the policy will cover you to increase coverage so that you will be compensated to repair the home up to current code and standards.  However, you can request increased coverage of ordinance of law if you feel the updated to your home would be significant.
6. Earthquake Coverage – In New York, no home insurance carriers automatically cover your home for damage caused by an earth quake, but you can endorse your policy to add this coverage for an additional premium.   
7. Service Line Protection – this would cover your sewer line, your water line and your electrical lines from the street to your home. Most policies do not protect these items, unless it is added by a specific endorsement. This is a very valuable coverage for people in our community considering how old so many of the homes are. The water and sewer lines below the ground will eventually collapse and need to be replaced. This can cost upward of ten thousand dollars. We will cover flood insurance in another article.
8. Water backup coverage – Do not confuse this coverage with FLOOD INSURANCE as that would be a totally different policy. Water backup will cover your home for damage due to the sewer backing up in to the home via the sewer main in your basement.

There are virtually hundreds of other items you can add on your home insurance policy to protect you from a potential claim. If you would like to discuss various scenarios please feel free to call us or stop by our office. However, there are much to many scenarios to discuss in this tips articles. The main thing you should take away from this article, is don’t assume everything is covered under your home insurance policy. Do your research and make sure the company you have is not only the least expensive insurance company, but a reputable company that is capable of paying claims. Price should never be the only factor you base your decision on. Trust me, the day you have a claim, you would have paid more money to cover your family properly had you known you did not have the right coverage. Quality Coverage is the most important factor you should be concerned with. If not, then why buy insurance at all? If you are not covered in the event of a loss because you wanted to save a few dollars, you will be making a big mistake when it counts in the end. Insurance is meant to make us whole again after an accident. If you have the wrong coverage, you can’t accomplish the goal of getting back to your life as it was before the claim. Do yourself and your loved ones a favor, have your policy reviewed, make sure your home which is your single largest investment of your life, is protected properly. TV Commercials from Insurance companies will show you the gimmicks of saving money in 10 minutes or less. Don’t rush through these decisions when it comes down to protecting your family from a disaster, take your time and review your coverage with someone in person. The TV Insurance companies can’t give you what an independent local agent can offer. We live in your neighborhood. We know your homes because our homes are the same.  We know the coverages you need. We will listen and act on your insurance needs. We will always be there for you when you need us, not like a representative on the phone answering a call in a warehouse somewhere across the country. Insurance is not about gimmicks, its about protection. Call on your local insurance agent for help and understanding. We help you protect what’s important. You decide what that is, then come see us, and let us go to work for you.

To get a free quote on your home insurance, please give my office a call at 718-829-3200. We offer home, auto, life and business insurance. Feel free to stop by our office at 3600 East Tremont Ave. We are open Saturday’s as well. Have a great week!  

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