What is it?
Homeowners Insurance provides important coverage to protect your home, your family, and your future. While every policy varies based on the optional coverages added and the features of your home, most policies will cover the home itself, your belongings, and your liability exposure.
It is important to tailor the optional coverages based on the specific home and your family’s coverage needs, but these are the basic coverages included on most homeowners policies:
- The dwelling: The dwelling coverage, usually called Coverage A, extends to any portion of the home that is attached to the foundation, including a deck or patio, or an attached garage.
- Other structures: Other structures that are not attached to the home, including a detached garage, fence, shed, etc.
- Personal property: Coverage for your belongings, including clothing, furniture, electronics, dishes, etc.
- Liability: Coverage for legal expenses and judgements against you if you are sued due to a guest's injury on your property or damaged you cause to someone else’s property.
- Medical payments: If someone is injured on your property, regardless of whether or not you were negligent, this coverage can pay for their medical expenses.
- Loss of use: If your home is uninhabitable due to a covered loss, this coverage will extend to cover the additional living expenses you incur as a result.
How does it work?
- If you have a loss: Call us at (303) 597-1667 as soon as possible for claim assistance.
- Many Homeowners Insurance policies come with similar base coverages, but not all policies are equal. It is important to customize each policy to meet the unique coverage needs of the property and homeowner.
- There are many common misconceptions about Homeowners Insurance, these are some of the most common::
- You do not need to insure your home for the market value, it is important to insure the cost to rebuild the home.
- Homeowners Insurance covers a lot of “perils,” but it is not all-inclusive, and every policy varies.
- Most Homeowners Insurance policies will not cover flooding, earthquake, wear and tear, maintenance issues, or intentional damage.
We answer 7 common home insurance questions
1. Does my home insurance cover my car if it’s parked in the garage?
While some insurance carriers may have different guidelines, the vast majority of home policies exclude any vehicles from coverage, even if it is parked in your garage. Your vehicle is meant to be covered on your auto insurance, so homeowners insurance does not include that coverage. The one common exception is that your homeowners insurance can cover your personal property if it is stolen out of your vehicle.
2. Why do you need to know what breed my dog is?
Many insurance carriers have an “ineligible breed list,” and if your dog is on that list your home is not eligible for coverage with that carrier. While your dog may be the friendliest pup around, there are certain breeds that are more inclined to cause significant damage if they were to bite someone. That is a risk some insurance carriers elect to avoid.
There are some carriers that do not have a breed list, so assuming your dog does not have a history of aggression or biting, you should still be able to find coverage for your home. More information can be found on our blog: How can I get homeowners insurance with a Restricted Breed dog?
3. Does my home policy cover flooding?
Nearly all homeowners policies specifically exclude coverage for flooding, which can include anything from a flash flood to water accumulating in a window well and seeping into the home. A select few carriers now offer an optional endorsement to add flood coverage, however with most carriers the only way to obtain coverage for flooding is to purchase a separate flood policy.
More information can be found on our blog: Did you know that every home is in a flood zone and that just one inch of water can cause over $25K in damage?
4. Is my jewelry covered by my home policy?
Most insurance policies have a specific “sub-limit” for jewelry, so there may be a limit to the amount of coverage for any individual piece of jewelry. If you have valuable jewelry, it is best to “schedule” it on your policy at a value agreed to by yourself and your insurance company. If the jewelry is scheduled, it is also covered for “mysterious disappearance,” like if you were to take it off at the gym and accidentally leave it behind.
5. Does my home insurance cover my home business?
That will depend on both your insurance provider as well as the type of business. Every insurance carrier has their own specific guidelines, but it is typically easier to find insurance for home businesses if there is not frequent foot traffic involved. If your homeowners insurance will not extend coverage for your home business, you can look into a commercial policy to cover that risk.
More information can be found on our blog: Does working from home affect my homeowners insurance?
6. What is a deductible?
A deductible is the amount the policyholder is responsible to pay before the insurance company will payout for a claim. You can have a separate deductible for All Perils and for Wind and Hail losses.
7. Do I need to insure my home according to the current market value?
Not necessarily! For insurance purposes, the value that really matters is how much it would cost to rebuild your home if there was a total loss. Since market values can fluctuate frequently, the cost to rebuild your home and the amount it would sell for often differ. Luckily, most insurance companies offer a Replacement Cost Estimator to help determine what it would cost to rebuild your home so you can pay for the right amount of coverage.
Our blog helps explain the best way to cover your home: How does homeowners insurance work in Colorado?