Home Insurance

Our standard homeowner's insurance policy has the following coverages.

• Dwelling coverage: It offers protection for the structure of the home and includes floors, ceilings, walls, built-in appliances, and any other structure attached to the main property. Perils covered include fire insurance for houses, hail damage insurance, theft, and vandalism. You can repair or rebuild your home up to the policy limit in case of a total loss.
• Contents coverage: Items like clothing and furniture in your home are protected if a covered incident were to occur. You would receive a claim for the value of these items as stated in your policy.
• Personal liability: It consists of bodily injury damage coverage if you are injured in your home or elsewhere.

However, regardless of your policy limits, dwelling coverage does not cover everything and you should customize the policy. Include flood house insurance, earthquake house insurance, and tornado home insurance as optional add-on coverages, more so if you live in an area that is prone to such natural calamities.

Yes, you will need a landlord or rental dwelling policy, for example, fire insurance for rental property if you rent out your home for a long period, say more than 6 months. Since a landlord policy has more increased protections than a standard homeowner's policy, it costs about 25% more.

A typical landlord policy covers the following areas.

• Physical damage to the structure of the house from fire, lightning, hail, snow, ice, or other covered perils.
• Any personal property left on site for maintenance or tenant use such as snow blowers, lawnmowers, or other appliances.
• Liability coverage if a tenant or one of their guests is hurt on the property. Coverage includes legal fees and medical expenses.
• Most landlord policies cover loss of rental income when a property cannot be rented out while a property is being repaired due to damage from a covered loss.

A landlord policy is only on the structure like building fire insurance and not on the possessions of the tenant. To avoid disputes in the future, landlords generally ask the tenants to buy renters insurance before signing the lease deed.

Go through the following steps to file a home insurance claim if your home is damaged from a covered incident. It will not only expedite the reimbursement but will also maximize the settlement.

• Evaluate the damage: Survey the damage to your home and belongings. For example, if you experience extensive damage from rain and you have home insurance from rain damage, do not enter the house until clearance is given by local officials or emergency personnel. File a police report when the loss is due to a criminal action such as burglary or vandalism.
• Document the damage and create a list of affected items: Document the damage through photos and videos of the affected property. If you have a home inventory of all your possessions, you can use it to create a list of damaged items.
• Contact your insurance provider: Contact your insurance provider as soon as possible. Verify whether your claim will be covered and the deductible. Find out how long you have to file a claim. Have your policy number ready with you during the discussion.
• Ensure your safety and prevent further damage: Avoid making permanent repairs and throwing out damaged items. Focus on temporary repairs to ensure your safety and preserve the receipts of emergency fixes, replacement items, or temporary housing. You can later request their reimbursement from the insurance company.
• Fill out the required forms: You can file a claim online, through an app, or fill out the physical forms provided by an agent.
• Schedule an inspection: Once the claim is submitted the insurance company will assign an adjuster who in most cases will want to make a physical verification. Before the inspection, keep all documents like proof of ownership and a list of items damaged ready with you.
• Get estimates for repair: Obtain quotes for repair of the damage from reputed contractors. Your insurance provider might suggest some names too. If possible, have the contractor present during the inspection but hold off on repairs till you get approval from the insurance company.

Start on final repairs after you receive the check. Generally, it will be the first installment based on the estimates submitted by you which can be used as the cost of repairs and replacement of damaged goods. You will get a final claim settlement check after you submit bills from the contractor for your final expenses.

The standard homeowner's insurance is HO-3 and offers a range of protections for property and personal belongings as well as liability, medical payments, and additional coverage for living expenses. You should understand the details of the policy and how much you can claim for damage. Some lenders insist on fire insurance for the mortgage to cover the loan amount but that will not cover the expenses to rebuild your home if necessary.

A standard policy covers loss from fire through home insurance fire coverage, smoke, theft, or vandalism. Then, other weather-related events may be covered by hail damage home insurance, tornado home insurance, home insurance for flooding, and more. If you live in a fire-prone zone, you can choose an add-on like homeowners insurance for wildfire.

Personal belongings in the house such as kitchen appliances, furniture, clothing, heating and cooling systems, and other possessions are also covered under standard homeowners' insurance.

Older homes are more prone to risks as their structure is considerably weaker than new construction. On the other hand, new homes with new materials and zero wear and tear carry lower risks for an insurance company.

The cost of buying an older home will be considerably lower than a new home. However, the difference in homeowners' insurance is a matter of concern. For example, 10-year-old homes will have a 53% higher policy premium than new homes. Similarly, the difference rises to 75% in the case of 30-year homes.

Generally, homeowners' policies cover a wide range of perils, events, and natural calamities that might cause damage to your belongings and property. However, there are many exclusions too in a standard policy and you have to buy separate covers and add-ons to have them included.

Several natural disaster events like floods and earthquakes are not included in standard coverage. You can customize your standard policy by adding home insurance after flooding or earthquake house insurance by paying the required costs. Further, if you live in a bushfire-prone area, you can add an extra layer of protection to your standard policy by including homeowners' insurance for wildfire.

Yes, A Home Insurance Policy may be cancelled at any time and you have a right to get a refund of your premium also. With most insurance companies, you can cancel at any time and get reimbursed for any unused policy premiums. Smaller insurance companies charge 10% of the annual fees as cancellation charges. This financial penalty is called short rate cancellation if you terminate the policy before the due date.

You can cancel your policy with the date coinciding with your home's transfer of ownership if you sell the property. Since the house is no longer yours, you do not have the responsibility to protect it either.

You can legally go without a Home Insurance Policy if your mortgage is paid off or you have bought the home outright. But just imagine the loss that you have to bear from your pocket if your home is burnt down for any reason and you do not have homeowner's insurance fire coverage!