Whether you rent or own you need a type of Homeowners Insurance. Homeowners Insurance comes in many different names. Here is a list of Homeowner type policies for all of your insuring needs.
At the bottom you will see definitions and examples of the coverages mentioned.
HO 3 & 5 Homeowners Policy – This type of policy is for a house that you own and that you live in. This could be for your primary home or secondary, but this is not for a house that you regularly rent out. A Homeowners policy gives you Coverage A, B, C, D, E, and F above. This type of policy will give you replacement cost on both your dwelling and most likely your contents. If you have a standard HO 3 you might only have Actual Cash Value on your contents.
HO 4 Renters Policy – This type of policy is for a house or unit that you rent and that you live in. This could be for your primary or secondary home, but this is not for a home or unit that you regularly rent out. A Renters policy gives you Coverage for C, D, E, and F above. You might also get a small a
mount of Coverage A (Dwelling Coverage) to cover improvements or betterments that you have made to the rental unit. Please be aware that if a pipe burst three stories above your unit and your contents are ruined neither the person that had the burst pipe nor the apartment complex are responsible for your items. You need to have your own renters policy to cover yourself and your items.
HO 6 Condo Policy – This type of policy is for a house or unit that you purchase and are only responsible for a part of the interior dwelling and that you live in. This could be for your primary or secondary home, but this is not for a home or unit that you regularly rent out. A Condo policy gives you Coverage for A, C, D, E, and F above. Coverage B is available if needed.
Mobile Home Policy – This type of policy is for a Mobile or Manufactured Home that is on a permanent foundation and that you live in. This could be for your primary or secondary home, but this is not for a home that you regularly rent out. A mobile home policy gives you coverage for A, B, C, D, E, and F above. This type of policy may give you either replacement cost or Actual Cash Value on your Dwelling and Contents Coverage.
Vacant Homeowners – This type of policy is for a Home that neither you nor anyone else is living in. This covers you for A, B, E, and F above. You may also get coverage for contents if there are any in the home. A Vacant Homeowners policy is very important since Insurance Companies are starting to crack down on the Vacant Homes currently being insured under a regular homeowners policy. They will deny claims if the home is vacant and pipes burst.
Dwelling Fire Policy – This type of policy is for a Home that you own or rent and are renting to others. This covers you for A, B, C, D, E, & F above. You will have a limited amount of Personal Property (contents) coverage since most of the contents will belong to your renter. Listing the items you provide is good way to come up with a limit required for Personal Property (contents) coverage. This type of coverage does not insure your tenant and we feel that you should require your tenant to get their own Renters Policy. The loss of use coverage will apply if the home is unable to be rented due to a covered loss.
Here are Definitions and Examples of coverages used above.
Coverage A: Dwelling Coverage – This coverage applies to the structure of the building or the part of the structure you are responsible for. This includes alterations, appliances, fixtures, and improvements that are part of the building and contained within the residence premises such as built-in appliances and cabinets, electrical fixtures, and similar items of this nature. It may also include trees and shrubs that may be located on the residence premises.
Coverage B: Other Structures – This coverage applies to other structures on your property such as sheds, detached garages, barns, or swimming pools.
Coverage C: Personal Property (Contents) – This coverage may include such items as furniture, clothing, television and stereo equipment, books, compact disks, and area rugs.
Coverage D: Loss Of Use – If your primary insured residence is unfit to live in due to a covered loss. Such as, your home burns down and you need a temporary living space until the home can be rebuilt. Your policy will also cover such things as civil authority, if the police won’t let you into your neighborhood and you need to pay for a hotel room until you can get back into your home.
Coverage E: Personal Liability – This provides coverage if a claim is made or suit is brought against the insured because of bodily injury or property damage caused by a covered occurrence. This will cover you for things like your child throwing a ball through someone’s window or if someone falls down your steps.
Coverage F: Medical Payments – This coverage will pay the necessary medical expenses that are incurred or medically ascertained causing bodily injury to someone other than an insured. Coverage applies to accidents that occur on the insured premises, or any location, when caused by action of the insured. A child is playing on your swing set and they fall off, even though it was no fault of yours, the child’s injuries should be covered up to the Medical Payment limit.
Replacement Cost – Insurers consider replacement cost of a property item to be the cost to replace it with new property of like kind. So if your wall to wall carpeting is ruined due to a burst pipe in the house they will pay for you to have new wall to wall carpeting installed of like value.
Actual Cash Value – Actual cash value is replacement cost, minus the accumulated depreciation for age and condition. So if your wall to wall carpeting is ruined due to a burst pipe in the house they will pay for your wall to wall carpeting minus depreciation from wear and tear and/or how old the carpeting is.
We hope that you understand the importance of Homeowners insurance and take a few minutes to review your policy or call your agent to make sure that you are properly insuring yourself. You work hard to have a nice home, make sure that it isn’t taken away from you for something out of your control.
If you need a quote for any of the above coverages, please feel free to call SASCO at (908) 852-5555. Remember, When the question is Insurance…The Answer is SASCO.