Homeowner FAQ’s

What does a basic homeowner’s policy cover?

A basic homeowner’s policy will cover damage caused by wind, hail, fire, and lightning. In the event that your home is damaged by these elements, your policy can pay for the repair or rebuilding of your home. Insurance for flood, sinkhole, earthquake, water, and sewer backup damage must be purchased separately.

Most standard policies also cover structures that are detached from your home such as a garage or shed, and coverage is usually between 10%-20% of the amount of insurance you have on the structure of your home.

When deciding on the limits of your coverage – the maximum amount the insurance company can pay – make sure that your policy covers the cost to replace the structure, not market value or just what you still owe on it.

Will my homeowner’s policy cover what’s inside my home too?

Whether the contents of your house – furniture, clothing, and other items – are stolen or are destroyed in an insured disaster such as a fire, they are covered under this part of the policy. Most companies provide coverage for about 50%-75% of the amount of insurance you have on the structure of your home. To further protect your property be sure to complete a home inventory form.

How can I protect my personal possessions and valuables, such as my great aunt’s china?

Conduct a home inventory to determine if that’s enough coverage for your personal belongings. If the amount is insufficient, or if you have particularly valuable items such as fine art and jewelry, you may need to purchase additional coverage, called a floater.

You should know that most homeowner’s policies contain internal sub-limits for such items as guns, furs, and silverware that can limit the amount of recovery. Also, most policies limit contents coverage for property kept at an additional residence or stored in a commercial storage facility. Buying specific coverage may be the best option for maintaining full coverage in these instances.

Standard homeowner’s policies also provide limited coverage for trees, plants, and shrubs as well as for unauthorized use of your credit cards.

Will I be covered for any living expenses in the event of a fire or storm?

If the damage from a fire, storm, or other insured peril forces you out of your home, this part of the policy covers the expenses incurred while your home is being rebuilt. Many policies provide coverage for about 20% of the insurance on your house or limit coverage to expenses occurred over a twelve-month period. Our policies do not permit an increase in this coverage.

If you rent out a portion of your house, additional living expenses coverage also reimburses you for the rent that you would have collected from your tenant if your house had not been damaged or destroyed.

What is liability protection?

Liability protection covers you against claims or lawsuits for bodily injury or property damage that you or your family members negligently cause to other people or property. It also pays for injury or damage caused by pets.

So if your son, daughter, or dog accidentally ruins your neighbor’s valuable rug, you’re covered. But if they destroy your own rug, your liability coverage does not provide compensation.

I’ve heard that my policy covers some medical expenses. Is this true?

Yes. Your policy also provides medical coverage. In the event a friend or neighbor is injured in your home, he or she can submit the medical bills to your insurance company. Expenses are paid without the injured party filing a liability claim against you. Liability coverage pays for both the cost of defending you in court and any court awards up to the limit of your policy. This coverage applies anywhere in the world.

You can also purchase an umbrella or personal catastrophe liability policy to provide broader coverage, including claims against you for libel and slander, and higher liability limits.

I am a renter. Do I need homeowner’s insurance?

What you need is renter’s insurance. If your apartment burns, your landlord may be reimbursed for the cost of the building, but unless you have renter’s insurance, you will not be compensated for your lost possessions.

F.Y.I.: Additional Homeowner’s Coverage Options

• Replacement cost. This policy pays the cost of rebuilding or repairing your home, or replacing your possessions without a deduction for depreciation.
• Sewer or drain water backup. This coverage insures your property for damage caused by the backup of sewers or drains. Water backup may not always be included in a policy. Check with your Robertson agent for more details.
• Umbrella or personal catastrophe liability. This option is a way to add more liability protection and broader coverage to your standard policy.
• Earthquake insurance. Most homeowner’s policies don’t automatically include earthquake insurance, but it can be purchased as an optional endorsement.
• Flood insurance. As with earthquake insurance, flood insurance is excluded from most homeowner’s policies and must be purchased separately through the National Flood Insurance Program.
• Coverage for valuables. If you own expensive jewelry, electronic equipment, or collectibles, you may want to purchase additional coverage such as an inland marine policy. Although these items are protected by your policy, coverage for theft or loss is limited.
• Identity protection. Identity Recovery Coverage is designed to help you restore your credit in the event of identity theft.
• Sinkhole insurance. This coverage is not included in most homeowner’s policies and can be added to your insurance policy as an option.
  

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