Homeowners Insurance FAQs

From Insurance Lounge

  • What is homeowners insurance?

    Homeowners insurance compensates you for damage to your home or the property inside. Homeowners insurance also protects you if you’re legally liable for someone’s injuries on your property, as well as financial losses caused by storms, fire or theft and other events outlined in your policy. Different companies offer different insurance... More

  • How much homeowners insurance do I need?

    The amount of coverage you need depends on a few factors including the replacement value of your structure. Note that replacement value may be higher than the market value of your home. Next, consider the value of the possessions inside of your home including furniture, clothing, electronics, jewelry and so on. Once you decide what level of... More

  • What are the different homeowners insurance policy types?

    Homeowners insurance is designed to protect your home from harm or “perils”. You can typically purchase three different types of home insurance policies including: Homeowners 1 (HO1): Covered against 11 basic perils. Fire or lightening Loss of property on premises due to fire or other perils Vehicles Windstorm or... More

  • What factors can affect my premium?

    Home features and characteristics – Your home’s age, structure quality and value all affect replacement cost, which affects your premium. The older your home, the more it will generally cost to insure. Location – If your home is in a decent neighborhood where there is less likelihood of theft, close to the fire station, and in an area free... More

  • Am I required to have homeowners insurance?

    If you are paying a mortgage for your home, it is likely that your lender will require a homeowners policy be in place. If you own your home outright, you are not required to have homeowners insurance, though, it is a good idea.

  • Why should I complete a home inventory?

    When you purchase a homeowners policy you should create an up-to-date inventory to expedite claim settlement. With a complete inventory your insurance company can verify your property and settle your claim more quickly. This information is also valuable to write off losses on your income tax return.

  • What is the best way to create a home inventory?

    Go room to room writing a list of possessions. Take pictures of individual items, and videotape throughout the house. Write an inventory list in a word document or in a spreadsheet. Save the information off-site in the event of a fire.

  • What is the difference between a special form policy and a named perils policy?

    A named perils policy covers losses that are caused by only those perils listed in the policy. The perils typically covered include fire, windstorm, hail, and other direct physical losses. A special form policy covers losses that are caused by any peril except those specifically excluded in the policy. It is important to note that a special form... More

  • What is renters insurance?

    Renters insurance typically provides coverage, up to the limits you select, for specified items and situations, including: Personal property (furniture, electronics, computer equipment, clothing, etc.) Personal liability if someone is hurt, whether in your home or away from it Damage to your apartment or home caused by a covered loss Your... More

  • What does renters insurance cover?

    Renters insurance provides coverage for your own items, and it provides coverage for other people’s injuries or damages in situations for which you’re liable, as well.

  • Can I insure my Mobile Home?

    Mobile homes can be covered under a mobile home policy. This coverage can include: Detached structures on your property, such as a shed or garage; Your personal belongings; Living expenses if your home is severely damaged by a covered loss; And injuries that might occur on your property—up to the limits you choose on your mobile home insurance... More

  • Can I insure my Condo?

    Condo insurance is different from a home insurance policy because its designed specifically for condos. A basic condo insurance policy will cover damages to most of your personal belongings, as well as walls, floors, ceiling coverings, etc. Most condominium by-laws or trust agreements state that the condo owner owns or is responsible for everything... More