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Introduction to Homeowners Insurance

Thursday, May 20th, 2010

Intro to Homeowners


Most homeowners don’t have a choice in whether to purchase this kind of insurance – it is usually required by the mortgage lender.  Even if the mortgage is paid off, homeowner’s insurance is good buy.  A good homeowner’s policy provided by Hatcher Kimrey Insurance not only protects the house, but all the possessions inside.  Also, homeowner’s policies cover personal liability due to negligence and will provide legal defense up to the policy limits.

house

What Is Insured?

 

Coverage A protects the dwelling from all risks up to the policy limits.  The home should be insured for the replacement cost.  Replacement cost is the amount required to replace or rebuild your home or repair damages with similar materials and quality.


Coverage B protects unattached structures such as tool sheds, detached garages, detached houses and their contents.


Coverage C protects your personal belongings (clothing, furniture, standard electronics).  Some forms of personal property, such as silverware, guns, jewelry, antiques and computers, will require a separate endorsement.


Coverage D provides for living expenses in the event your house is uninhabitable while the repairs are being completed.


Coverage E protects you against a claim or lawsuit resulting from an injury or property damage caused by your negligence. 


Coverage F pays for medical expenses for accidental injuries on your property.


Types of Policies


Before purchasing homeowner’s insurance in Texas, it is best to familiarize yourself with the types of coverage insurance companies will generally offer.  Below is a brief summary of the types of homeowners insurance sold by Hatcher Kimrey Insurance.


HO-1 (HO-A) Basic Homeowner insures your property against 11 basic perils: lightning, fire, windstorm/hail, explosions, riot/civil unrest, aircraft, vehicles, smoke, vandalism, theft, and glass breakage.


HO-2 broadens the basic coverage to include 7 additional perils:  falling objects, collapse of roof due to snow or ice, damage from steam/hot water system, leaking of plumbing or heating system, pipes freezing, and electrical damage from appliances, wiring, or fixtures.


HO-3 (HO-B) provides for comprehensive coverage (Broad Form risks) on your home.  This insures your home against loss on a replacement cost basis.


HO-4 Renter’s Coverage insures your household contents and personal belongings, but not the structure.


HO-5 (HO-C) policies provide the most extensive coverage, often referred to as all-risk policies.  This policy offers replacement cost coverage for most types of risks.


HO-6 Condominium Unit Homeowner policy protects items not insured by the condominium association’s policy, such as damage to personal belongings, wall, floor and ceiling coverings, and any accessories not originally installed in the unit.


Hatcher Kimrey Insurance recommends that you purchase guaranteed replacement cost coverage and insure 100% of the value of the home and its contents.  You need to keep meticulous records of the value of your personal belongings, and purchase riders to insure any of your belongings excluded from your basic coverage.  Many insurance companies provide assistance with determining the replacement cost value of your home.

Please be aware that not all policies with insurance companies are the same.  Some have exclusions or endorsements that change the policy.  It is wise to have a professional explain the differences in coverage between companies.

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