HOMEOWNERS INSURANCE BASICS
For most people, their home is the largest and most important purchase they will make in their lifetime, and therefore their largest asset to protect. When it comes to buying Homeowner's Insurance, determining the right amount of coverage, navigating between mandatory vs. optional coverages, and choosing a sensible deductible can make this a daunting experience.
Property Coverage – Dwelling (Coverage A & B)
Homeowner's Insurance can provide coverage to repair or rebuild your home in the event of a loss. Almost all perils, except Earthquake and Flood, are covered under a typical homeowner’s policy. Attached and detached structures are also covered. The amount of coverage you should have on your home is equal to the Replacement Cost Value – not the Market Value or the Loan amount. Market values can fluctuate wildly and bear no resemblance to what repair costs may be. Loan amounts typically include the value of the land, which is not insured.
Property Coverage – Personal Property (Coverage C)
Your household furnishings, clothing, and other items of personal property are covered for loss under a typical Homeowner's policy. In most cases, your personal property is covered anywhere in the world. There are usually limitations on certain items such as jewelry, fine arts, money and securities, etc. but optional additional coverage is always available.
Loss of Use (Coverage D)
Your Homeowner’s Insurance policy provides additional coverage to reimburse you for any additional living expenses you might incur if you are temporarily unable to occupy your home due to a covered loss. A good example for the Santa Clarita area would be if you are temporarily evacuated from your home due to a brush fire, you may have to incur hotel or meal expenses for several days before you can re-occupy your home. These additional expenses would be covered.
Liability Coverage (Coverage E)
Homeowner’s policies include protection for your legal responsibility or liability for any injuries and/or property damage you or your family members cause to other people. This protection includes legal defense.
Medical Payments to Others (Coverage F)
Medical Expense pays for necessary medical expenses incurred by others (not you or your family members) as a result of an injury that takes place in your home.
While a Homeowner’s policy covers a myriad of thing you probably never thought of - eg. Fire Department Service charges, grave markers, trees & shrubs, lock replacement, to name a few - there are many additional optional coverages available. Limits of Liability, Deductibles, additional coverage for jewelry and other high value items, Ordinance of Law, and Persoanl Injury are all examples of available coverages on a homeowners policy.