HOME INSURANCE

A home is the main asset of every individual. In order to protect it, knowing the right coverage is a necessity. Home insurance can provide coverage for catastrophes that can happen within or outside your home. For example you can protect yourself against damages that may happen to your dwelling structure, contents, and liabilities.

Types of Home Insurance include:

HO-3 and HO-5

Home Insurance has many elements that offer protection for your home from top to bottom. The primary HO-3  and HO-5 coverage for single family homes include:

• Coverage A: Covers the value of your dwelling (structure). Provides coverage to rebuild your dwelling. There are two types of coverage options for coverage A. The most common one is Actual Cash Value (ACV) which pays to replace your home minus depreciation. The other coverage is Replacement Cost coverage in which the policy pays to replace your home without depreciation. Some policies offer guaranteed replacement cost pays to rebuild your home as it was before the loss occurred. The alternative to guaranteed replacement would be Extended Replacement cost which pays an extended percentage over the limit of your coverage A.
• Coverage B: Covers structure(s) other than your dwelling which are detached from your dwelling such as Gazebo, Detached Garages, Decks, Patio, Guest House, and other detached structures.
• Coverage C: Covers personal property such as furniture, electronics, computers, and other items that are attached to your dwelling. Jewelry, fire arms, and collectibles have limited coverage in which you can endorse additional coverage on your policy to properly insure them.
• Coverage D: Covers the additional living expenses temporarily while your dwelling is not livable. For example it pays the expenses of staying in a hotel while your dwelling is being repaired.
• Coverage E: Covers your financial responsibilities like the cost of a lawsuit when your household unintentionally causes bodily injury and property damage to others.
• Coverage F: Covers medical expenses when somebody other than your household is injured.

HO-4

This coverage is otherwise known as renter insurance which provides coverage for personal liability, personal property, and additional living expenses. Landlords may require tenants to obtain renter coverage before moving in.

HO-6

This coverage is for condominium, co-op’s, and townhomes. HO-6 policies are similar to your traditional HO-3 policies except in most cases your homeowners association master policy provides exterior dwelling coverage which you pay for with your homeowners association dues. For this reason, your Coverage A is going to insure walls in coverage such as your cabinets, flooring, countertops, and other fixed items to your dwelling.

DP-3

This policy covers the landlord’s when there’s a loss. All DP-3 coverage covers the dwelling including the attached structures. Some DP-3 policies also covers loss of rental income, and landlord contents such as appliances. DP-3 also covers landlord liability when a lawsuit is brought against them.