This type of policy is coverage for a structure that is occupied by the owner. The coverage amount is based on the “replacement cost” of the home, not the market value. Homeowner’s policies can be purchased through a number of different venues — direct writers, independent agents, online and associations/clubs, to name the most popular ways. The homeowner’s policy coverages are broken up into two parts, property and liability. Included in the property coverages are the structure itself, other structures on the property, personal property not attached to any structures, and the loss of the use of your home. Personal liability for injury of others and medical payments for visitors who are injured on the property would be covered under the liability portion of the policy. When speaking of property coverage, there is usually a deductible that applies. The higher the deductible you select, the lower the premium will be. Some perils that are typically not covered on most policies are flood, termite damage, intentional acts, wear and tear, earthquakes, acts of war, and maintenance issues. There are also some limitations of coverage for certain types of personal property such as jewelry, silverware, guns, furs, and money. Some things that will affect the insurance premium that you pay are: the type of construction of the home; the age of the home, any losses you have had in the past, and your credit score. Most companies provide multi-policy discounts, so it is always wise to combine your auto, umbrella, watercraft, and even life policies with the same insurance company to obtain those discounts. In searching for a new policy, it is best to obtain more than one quote because coverages and premiums will vary from company to company.
Flood is excluded from the homeowner’s policy. Most insurance agents can place this type of policy for you. Policy premiums are based on the flood zone in which you live. You can visit FEMA’s web site (www.floodsmart.gov) and fill in your address and it will show the flood zone for your home. There is a thirty (30) day waiting period for this type of policy to take effect after you complete an application and pay the premium. The exception to this 30-day rule would be when the policy is required by a lending institution for a closing.
Dwelling Fire Insurance
This type of policy covers a property wherein the occupant is not the owner. The owner purchases this policy and it covers the structure and can include some incidental personal property, such as refrigerators, stoves, washers, and dryers. It can also include liability and medical payment coverages. The property must be occupied.
Vacant Property Insurance
Vacant property is defined as a home with no one living in the structure. The property can be full of furniture, but if no one is living there, insurance companies still consider this a vacant dwelling. This type of property is very difficult to insure and expensive to insure. Policies are written by specialty companies and are usually written for three or six month terms.
Vacant Land Insurance
This is very different than vacant property. If there are no structures on the land, liability coverage can usually be attached to the homeowner’s policy for very little premium.
Loss Realty Group does not provide professional insurance advice. Please contact an insurance agent for further information. The foregoing was provided by:
Daniel R. Ross, CPIA
Savage-McVicker Insurance Agency
4331 Keystone Drive, Maumee, Ohio 43537
Office: 419-891-4666 Extension 206