Home Owners Insurance

What is a home owners policy?

A standard home owners policy insures your house, condominium, or apartment. It covers the structure, the contents, and protects against litigation in cases where someone is injured on your property.

Will filing a claim cause my rates to go up?

No. In most cases, once an insurer reviews Related Subjects your loss history and finds none, one claim should not affect your rates; however, if the claim exposes a greater risk on your property such as owning a new pool or a trampoline, then you will likely face a rate increase.

What are the various levels of Home Insurance?

• Actual Cash Value: The insured receives the cash value of the house and the items in the house after depreciation. It is important to point out that the insurance company performs the depreciation calculation and depreciates many things that you might not expect to be depreciated, such as jewelry. The premiums are the lowest on actual cash value policies.
• Replacement Cost: The insurance underwriter will pay the cost to rebuild, repair, and replace the structure and the contents without depreciating the assets. This is by far the most common form of home insurance, with premiums being higher than actual cash value policies but lower then extended replacement cost.
• Guaranteed or Extended Replacement Cost: The underwriter will replace the home and contents "exactly" the way it was prior to the insurance event. Because the costs of finding special materials and designs the costs of guaranteed replacement insurance is significantly higher than the other two levels of insurance.

What is the process when filing a claim?

• Step 1: The insured contacts the insurance provider to report an initial claim.
• Step 2: The provider contacts the insured to review the loss event and explains the steps of the claims process.
• Step 3: If no inspection is required, and adjuster contacts the insured and goes over and additional information. If all is in order the adjuster will likely release the claims check.
• Step 4: If an inspection is required, a field adjuster will contact the insured and schedule an inspection.
• Step 5: If a contractor is required, the adjuster will meet with both the insured and the contractor to go over the estimate and reach agreement on the scope of the project. If all is in order the adjuster will release the claims check.
• Step 6: If a contractor is not required, the adjuster prepares an estimate and issues a check.
• Step 7: If the insured contracts a contractor after the issuance of the check the contractor and the adjuster will meet to go over any issues that might arise.

What is a Policy Excess or deductable?

This is the portion of the claim that the insured agrees to pay, with the insurance company covering the rest.

What are "perils"?

"Perils" are the ways and means by which damage occurs.

What are the standard perils in an issurance policy?

• fire or lightening home insurance
• theft home insurance
• volcanic eruption home insurance
• falling object home insurance
• weight of ice, snow or sleet home insurance
• accidental discharge of or overflow of water or steam from within a plumbing, heating, air conditioning or automatic fire-protective sprinkler system, or from a household appliance
• explosion home insurance
• riot or civil commotion home insurance
• damage caused by aircraft home insurance
• damage caused by vehicles home insurance
• sudden and accidental tearing apart, cracking, burning, or bulging of a steam or hot water heating system, an air conditioning or automatic fire-protective system
• windstorm or hail home insurance
• smoke home insurance
• vandalism or malicious mischief home insurance
• freezing of a plumbing, heating, air conditioning or automatic fire-protective sprinkler system, or of a household appliance
• sudden and accidental damage from artificially generated electrical current (does not include loss to a tube, translator or similar electronic component)