Homeowners Insurance

Homeowners Insurance

Primary (including renters) and secondary residences and rental properties. We can insure homes that are used by the owner (owner occupied) as a primary residence or seasonal. We can also insure rental properties (tenant occupied) for 1-4 family dwellings.

An owner occupied homeowner policy has two main sections: property and personal liability. A declaration page would look like this:

Section I

  • Dwelling amount (the insured amount of the structure)
  • Other structures (detached structures on the premises and unless increased, this value is 10% of “A”).
  • Personal Property (also a percentage of “A”, it could be 50%, 75%, or other limit)
  • Loss of Use (covers additional monthly expenses should you have a covered loss that requires you to live elsewhere during repair/reconstruction)

Section II

  • Personal Liability (commonly used is $300,000, but could be higher or lower)
  • Medical Payments (commonly used is $1,000 or $5,000)

Examples of a few additional Homeowners Insurance policy features are:

  • Scheduling valuables (e.g., jewelry, furs, guns, artwork)
  • Extending Liability to another location owned by the insured
  • Increasing defaulted limits on “B” and “C”

Another topic to be discussed regarding a primary, secondary/seasonal dwelling, or rental property is the amount shown in coverage “A” and how we calculate it. Also, whether or not replacement cost or actual cash valuation is used in the event of a covered loss. Many people, especially those that own rental properties, feel it would be appropriate to insure their property for the appraised amount. However, most insurance policies do not include an appraised or market value loss settlement option in the contract language. Depending on the area, replacement cost and/or actual cash value could be much higher or lower than the appraised market value.