Homeowner's insurance protects you from damages to your dwelling. A dwelling is the structure you live in. For coverage purposes, dwelling also includes any attached garages or units. A basic homeowner's insurance policy may also cover damage to detached structures on your property such as a shed or swimming pool. The coverage also protects your personal property which includes furnishings and other belongings that you use, wear or collect. A basic policy insures these items from theft or peril-related damages. Note: jewelry and other collectibles often require higher limits so separate coverage on a floater. The policy also includes liability coverage which pays for accidents that occur on your property for which you are held responsible. Finally, there is also coverage for living expenses. When you have to live elsewhere while your home is being repaired, due to a covered claim, a basic homeowner's insurance policy is likely to cover additional living expenses that you incur.
Like any other type of insurance, you pay a premium to buy a homeowner's insurance policy. An insurance company bases your premiums on a variety of things. They will look at the history of claims in your neighborhood. They will also consider your personal claims history and credit score. The actual value of your home is considered. You can obtain policy coverage for the replacement cost of your home or its actual cash value. Replacement cost coverage protects you from inflation of home-repair costs. Actual cash value insures your home for its current value. Actual cash value is likely to be lower cost than ACV for all but the newest homes, since homes depreciate over time from age and use. Mortgage lenders generally require coverage for the replacement cost value of your home. Deductibles play a part in the cost of your insurance. A deductible is the amount you pay before the insurer begins to pay your claim. By paying a higher deductible, you're sharing the insurer's risk of paying a claim on your home. As a result, the insurer is likely to offer a lower premium. Finally, installing fire detection, sprinklers and theft deterrent systems can help you to lower your premiums. One of the most misunderstood exclusions is a typical homeowners policy is run off water. As with floods, run off water from rain is excluded from most homeowners policies. However, water from a broken pipe inside your home is covered. Unless you are in flood plain, then coverage for run off water remains excluded.
Our staff at Bates Insurance Group understands how important it is for you to properly protect your most valued possession, your home. Therefore we are always available to you to not only answer questions concerning this insurance coverage, but also provide you alternative products and pricing.