Home Insurance for Homeowners and Landlords

What is Homeowners Insurance?

Home Insurance typically covers losses and damage to a personal residence, as well as personal property and certain other assets within the home.  It is typically written as a package policy inclusive of Personal Liability affording third party coverage for the owner and resident relatives.

Can a tenant buy a Homeowners Insurance Policy?

Tenants are welcome to purchase a Renters Insurance Policy, also known as a Homeowners HO-4).  This valuable coverage would provide coverage for personal property and personal liability.

What is the Difference Between Homeowners Insurance and Landlord Insurance?

A landlord policy is designed specifically for the needs of a rental home inhabited by a tenant and includes specialized coverage, while a homeowners insurance policy is designed for the needs of an owner-occupied home.

The liability section of a homeowners policy is quite different to that of a landlord policy; the homeowners policy includes world-wide personal liability for the owner and resident relatives and the landlord policy would include a simple premises-only liability coverage to protect the landlord at the premises location.

How is the Dwelling Coverage Limit Determined in the Homeowners Insurance Policy?

Insurance companies use independent reconstruction cost estimators to calculate the home’s reconstruction value.  This value is used as the Limit of Dwelling Coverage to determine the premium.   It is important to understand that the reconstruction value of a home takes into consideration the reconstruction of the home in the event of a total loss; it does not take either the Property Market Sales Value or the Land Value into account.

How Long is the Insurance Period?

Property Insurance Policies are almost always issued on a 12-month term (annual).

What Can’t We Insure With Home Insurance Policies?

Standard homeowners insurance package policies typically do not include coverage for valuable jewelry, artwork, other collectibles, identity theft protection, or damage caused by an earthquake or a flood.  Some of these items may or may not be available by adding an endorsement or a rider if offered by the writing insurance carrier.

Home Insurance policies are considered ‘Personal Lines’, thus any dwelling utilized for commercial or industrial purpose must be covered under a Commercial Insurance policy (‘Commercial Lines’).

What is the Difference Between Frame Construction and Masonry Construction?

Frame homes have wooden studs running vertically through the walls with space for insulation between them.  Masonry homes won’t have wooden studs. Masonry homes are constructed with concrete, tile, or stone between the exterior material of the wall and the interior drywall.

Masonry homes are considered less combustible than frame construction homes. It is worth noting that exterior Stucco is not a construction type, stucco is a material used over wood frame or masonry construction.  In areas which are more earthquake-prone, masonry construction is generally not common.

Does Homeowners Insurance provide coverage for Jewelry?

Standard home insurance policies do cover jewelry but only up to a very small value; the specified dollar amount is listed as a sub-limit for special items under Personal Property.  Most unendorsed homeowners insurance policies will cover $,1500 for theft of jewelry, watches, furs, and semiprecious stones; the limit will be listed on the specific homeowners insurance policy – different carriers and different policy types will cover different amounts.

Insurance companies will usually offer the option to purchase a higher limit of jewelry coverage, either scheduled or on a blanket form without scheduling.  Each company will have a different set of rules, regulations, and requirements to purchase the coverage.

Are Valuable Paintings and Artwork covered by Homeowners Insurance?

Fine art differs from collectibles and jewelry, which your policy will typically cover up to a limit.  Home insurance policies typically cover up to a set limit for many specific categories of items. As an example, a home insurance policy may cover a loss of up to $2,500 for your art, collectibles and antiques.

Are Electronic Goods Covered?

Standard homeowners and renters insurance policies cover the loss or damage of electronic devices in the event of named perils, but not negligence or wear-and-tear.   They are covered under Personal Property coverage which protects your personal items against covered losses listed on the policy.  (i.e. Fire, Lightning, Wind, Hail, Theft, Vandalism, etc…)

 What Coverage Does a Home Insurance Policy consist of?

• Fire, lightning, explosion,
• Smoke,
• Windstorm
• Hail
• Riot
• Civil commotion
• Aircraft
• Vehicles
• Vandalism
• Volcanic action