Insurance FAqs homeowners insurance

A: It is always smart to have a good homeowners insurance policy, even if you don’t owe any money on your home. If you have a mortgage, home equity loan, or use your home as collateral, your lender will require you to maintain insurance. 

A: There are many different types of insurance policies. Levels of coverage, exclusions and limits of liability vary greatly. Some policies provide basic coverage, while others offer broad coverage and high levels of protection. 

A: It depends on your policy. Most homeowners' insurance policies cover storms including hail, tornado and wind damage. But floods and earthquakes usually require additional coverage. It is always smart to check your policy to see exactly what is covered. 

A: Not necessarily. The replacement cost is the actual cost to rebuild your home in the event it is completely destroyed, which may be more or less than the market value, or sale price. 

A: Homeowners insurance covers the repair or replacement of your home and its contents up to defined limits. Your policy may also include a liability policy, which protects you in the event someone is injured on your property due to your negligence. 

A: To determine the types of coverage you have, check the declarations page of your insurance policy. Types of coverage are as follows:

• Coverage A – Damage to your home
• Coverage B – Damage to other structures including garage, deck or swimming pool
• Coverage C – Loss or damage to the contents of your home
• Coverage D – Loss of use in case your home is not inhabitable
• Coverage E – Personal liability to third parties
• Coverage F – Medical payments to third parties

A: Your insurance company will pay for loss of use, in the case that your home is uninhabitable after it has been damaged by a storm, up to applicable limits. 

A: Most standard homeowners insurance policies cover damage done by tornado, windstorms and hailstorms. Check your policy for limits and details. 

A: Earthquakes, floods and other named exclusions usually require separate coverage. Normal wear and tear and poor maintenance is not covered by insurance. 

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A: No. Damage to your car is not covered by your homeowner's policy, even if a tree on your property falls and damages your car. Damage to your car is covered by your comprehensive auto insurance policy. 

 A: Most states prohibit insurance companies canceling your coverage or singling you out for a rate increase due to an Act of God damage claim