FAQ's about Home Owner Insurance
Q. Why should I buy home owner insurance?
A. Home owner insurance provides financial protection for your house, any personal possessions that you may want to additionally insure and liability expenses.
Q. What does a home insurance cover?
A. The home owner insurance will provide financial protection for any damages to your
home, personal items in the house and liability.
Q. What is the right amount of insurance?
A. This can vary, if you have any pending mortgage payments on our house. The lender may have very specific requirements about the coverage. Beyond that, it all depends on how much you can afford to lose in the event of damages caused to your property.
Q. What is a deductible?
A. This is the amount, the insurance holder must pay before the company pays anything. It is essentially your out-of-pocket expenses for each claim.
Q. What does the liability coverage provision include?
A. This protects you and all family members who reside with you in the household, against any expenses which you are obliged to pay. This could even include any lawsuit related expenses as well.
Q. What factors impact home insurance premiums?
A. Various factors can derive this, especially the type of construction, age of the house and availability of local fire protection.
Q. What are the standard coverage plans available?
A. The most common basic coverage plans are the property damage protection, personal liability and medical expense re-imbursements.
Q. What is included in personal property coverage?
A. This would include any article in the home which you have insured excluding certain high-ticketed items such as jewelry, designer watches, cameras, etc. Please refer to your policy details for the exact exclusions.
Q. What is replacement cost?
A. This is the cost associated with rebuild or repair your house with similar kind of materials without any deductions for depreciation.
Q. What is flood insurance?
A. Flood insurance is not included in the general home owner’s policy. This has to be taken through the federal government's National Flood Insurance Program. You can buy this from any licensed agent selling insurance policies.
Q. Will earthquake damage be covered in my policy?
A. Earthquake related damages are also not covered under the standard home owner’s insurance policy. If you are in an earthquake prone zone, then discuss with your agent to have special inclusions in your policy to protect yourself against such catastrophic disaster.