Home Owner Insurance

There are many sections that make up a homeowner insurance policy. For full details, speak to your broker or study the policy document. 

  • Part A - House. This section could  be described as the most important part of your homeowner insurance policy. This section will tell you how you house is covered ( or isn't covered). You should insure for the rebuilding cost of your home not it's market value. Your insurance cover will depend on your type of policy.

  • Part B - Additional Structures - This section of your homeowner insurance  policy covers you for additional structures that are not attached to your main building, included in these would be  the garage or shed for example. A limit of cover of 10% of your total homeowner insurance cover is normal.

  • Part C - Personal Property - This policy section will give you cover for your Personal property and possessions such as furniture, electrical goods and clothing. Usually 40-50% of your home insurance is restricted to personal possessions but there are a few restrictions. On High Value" items such as jewellery , you may want to by buy wider cover.

  • Part D - Loss of Use- if you home becomes uninhabitable following a claim insured peril, this section of your homeowner insurance policy will pay for your living expenses away from the premises whilst your home is being repaired or rebuilt.

  • Part E - Personal Liability - This  homeowner section covers you from liability claims, if someone become injured on your property. If a lawsuit is issued against you ,your homeowner policy will pay the costs of defence.

  • Part F - Medical Expenses - This  policy section helps to pay the medical bills of people injured on your property through your own activities.

Homeowner Insurance protection Levels.

There are a number of protection levels under a homeowner insurance policy; please refer to your broker to explain details in full to you.

  1. Actual Cash Value - Under this level of protection, your home or property is insured for the depreciated amount of the replacement value at the time of loss. The value of your home could  depreciate over time.

  2. Extended Replacement - Your home or property is insured  up to a specified amount . For example, your home may be covered by your homeowner policy for $300,000 with a $350,000 policy cap. If the event of a loss and it was determined  that the home needed to be rebuilt, then your extended home owner cover replacement  cover might pay up to $350,000 of rebuilding costs.

  3. Guaranteed Replacement - This is the best type of homeowner  insurance policy, of course it does cost more money but offers the best cover. There is no cap on the sum insured and you will be guaranteed replacement of your items following a loss. You may have paid a lower sum of money for your property but over the years have carried out improvements to increase it's value. This type of homeowner policy will help you retain the true value of your home. 

Homeowner Insurance Policy Types.

  • HO1 is the basic Homeowner Insurance policy covers damage to your home resulting from a limited number of perils, such as fire, theft and vandalism.  This type of basic insurance policy is only available in a few  American states  and is the least common policy.

  • HO2 or Broad home owner Insurance, this will cover the  same types of peril as HO1,as well as some additional "natural causes" It is only a little more expensive than HO1, but does give you; damage resulting from ice, snow and falling objects.

  • HO3 or Standard Home owner Insurance is  most common type of homeowner insurance policy It covers damage resulting from most natural disasters, however, please remember that floods and earthquakes are not covered and you will need a separate policy if you want cover  These perils  are usually covered by separate policies.

  • Fair Play Policy - You may not qualify for a one of the above homeowner insurance policies but you may possibly be able to obtain cover under the FAIR plan ( Fair Access to Insurance) This type of cover is normally available for homes in areas of high crime or "run down" areas.