Learning Center

Building (Dwelling) ¹

This will cover damages to your home from things like fire, hail, etc. Be sure to check what is excluded in your policy as some types of damage, like flooding or mold, are specifically excluded. You can purchase extra endorsements to get these special items covered as well. 1 - Building (Dwelling) Example
Let’s hope this never happens, but say your home burns to the ground, and you have $300,000 in building coverage and a $1,000 deductible. If your home costs $290,000 to replace, the insurance will pay $289,000 and you will pay the $1,000 deductible out-of-pocket

Other Structures

This covers structures on your property that are not attached to your main home. Examples of these structures are detached garages, storage sheds, in-ground pools, gazebos, etc.

Personal Property

This covers damages and theft of your personal property. Personal property includes items like clothing, appliances, and furniture. There are usually special coverage limits for certain item categories like money, jewelry, golf clubs, firearms, video equipment, music instruments, and silverware - that’s why I ask about what you own in these categories. If you have special high value items, such as that beautiful engagement ring, consider getting additional coverage for these items.

Loss of Use

Also known as Temporary Housing Expenses, this covers your living expenses if you have to stay in a hotel or somewhere else while your actual home is being repaired from a loss covered in the policy. These additional costs can also include additional food cost, transportation, and other expenses that exceed what you would normally spend if you were still living in your home.

Liability ²

Personal Liability coverage pays for loss settlement and legal fees in the event that you or your family members cause bodily injury or property damage to others. I know everyone can be clumsy at times :) 2 - Liability Example
You have a $500,000 liability coverage limit, and a neighbor slips on your steps and then sues you for their injury, lost wages and other damages, and the court finds you liable for $300,000. Your Personal Liability coverage would pay the $300,000, plus your legal fees. Let’s hope your neighbors aren’t this mean

Medical Payments

This coverage pays for medical bills when someone is injured by you personally, or on your property. Reasonable medical expenses are covered, regardless of fault, up to the amount of coverage you select. Still not a free pass to drunken boxing.

Typical Add-ons

Flood Insurance

Flood damage is usually not covered in your standard home insurance policy. Flood insurance is provided by the National Flood Insurance Program (NFIP). Flood insurance is required in high risk areas. While it isn't required in moderate-risk areas, it's still a good idea. Nobody dreams of a swimming pool in their basement, but it does happen. In fact, people in moderate-risk areas file more than 20 percent of all NFIP flood insurance claims.

Personal Property Replacement Costs

Your personal property loses value over time. Think about the price difference of buying something new vs. used off of Amazon. With furniture and appliances that you have owned for over 5 years, the difference between new and used value may be quite large. If you have to file a claim with the insurance company, you will usually get cash to replace the damaged property at the used cost. If you want to make sure you are being fully covered to replace all your damaged property with sparkly new property, you can add this endorsement. Definitely worth it in my mind.

Personal Umbrella

Personal Umbrella protects you if you have lots of savings or investments beyond just your primary home and want to protect these. This protection especially comes into play if someone tries to sue you for "everything you're worth".

Mold Coverage

What’s that smell? Mold is not covered in a Homeowners policy. Adding this coverage will cover property damage and liability losses arising out of fungi, wet or dry rot, or bacteria. This is an expensive coverage, because mold is expensive to remove. Usually involves tearing up carpet, drywall, or even replacing some part of the house itself.

Sewer/Sump Pump Coverage

Homeowners policies do not cover losses from water that overflows from sump pumps or water that backs-up through sewers or drains. This add-on provides coverage for such incidents. Sump Pumps are found in the basements of homes and are usually installed where basement flooding happens regularly. They are good at sending water away from the home when it rains/floods/etc.

Identity Theft Coveragee

This covers you and your family for expenses incurred as the direct result of identity fraud. These days, with everything going digital, our personal information is becoming more at risk. Getting personal information stolen online is scary! First and foremost, be safe with your information. Second, buy protection.

Personal Injury Coverage

This covers damages to you or your personal brand via libel, slander, false arrest, invasion of privacy, or malicious prosecution. Post a lot online? This may be a cheap way to get protected in case you unintentionally make someone so angry that they file a lawsuit against you.

Home Day Care Coverage

This adds coverage for your in-home daycare. Hope the kids are doing well!

Business Coverage

The typical homeowners policy does not provide much protection for business related activities. An add-on to a homeowners policy can provide you additional liability coverage for certain home-based businesses. To fully cover your business, we recommend looking at a Business Owner's Policy or BOP for short. Congratulations on being a business owner! Much respect.

Scheduled Personal Property

The following categories have limits on how much the insurance company will pay out. For example, if you have a really expensive engagement ring (bling bling), you should consider purchasing additional Jewelry coverage. Standard limits in special categories: