Frequently Asked Questions
Article 12 of 12: Home Insurance Guide
Homeowners Insurance Q & As
Q: Do I need homeowners insurance?
A: If you care about your home and your possessions, the answer is yes! You can never predict when or where a catastrophe will occur, so you should be prepared. And if you have a mortgage, your lender may require you to have home insurance.
Q: Are there any ways I can cut the cost on my home insurance premium?
A: There are several ways you can lower the cost on your home insurance premium. Some of the ways are: having a higher deductible, having your home and auto insurance policies with the same company, using fire-resistant building materials and installing burglar-proof security devices.
Q: My pipes froze and burst while I was on vacation. Is that covered?
A: Coverage for frozen pipes is provided under some home insurance policies, but you may need to prove that you properly drained all plumbing lines and/or maintained a proper level of heat to the dwelling. This is not covered under some very basic home insurance plans, so be sure to check your policy.
Q: What kind of risks does homeowners insurance protect against?
A: Although policies may vary, the major risks covered by homeowners insurance are:
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damage or loss to the home itself, as well as other structures on the land;
- damage or loss to the items of personal property in the home and other structures; and
- injury or harm to third parties (typically guests and others who come to your home).
Q: I'm renting an apartment. Do I need renters insurance?
A: Just like homeowners, renters face risks of loss. As a renter, the greatest risk is damage to or loss of personal property, and the landlord generally carries the burden for insuring the actual structure or building. Renters can also be liable to third parties that are injured while at the residence.
Q: There was a fire in my home, and now I'm staying at a hotel. Will my homeowners insurance cover this expense?
A: “Additional living expense” coverage (also called “loss-of-use”) is one of the most important features in a standard policy. This coverage will pay for your hotel costs, restaurant bills, and other additional living expenses when your home is too damaged to live in during repairs. The limit of coverage varies by company, so be sure to check your policy.
Q: Are my jewelry, collectibles and heirloom china protected under my regular homeowners insurance policy?
A: Yes, but there are usually specific dollar limits on coverages for cash, securities, coin collections, jewelry, furs, guns, silverware, antiques, and art. Make sure to check your policy to determine if there are special limitations for certain kinds of personal property. You can always increase coverage by adding an endorsement (or rider) to the policy.
Q: My neighbor's tree fell on my roof during a storm. Whose home insurance should cover this?
A: Homeowners are responsible for injury or damage to third parties that is caused by their ownership of property. In this case, your neighbor's homeowners insurance should cover your damage.
Q: My credit cards were stolen. Will my homeowners insurance cover any unauthorized purchases?
A: Most homeowners and renters insurance policies provide coverage for theft of credit cards, but the amount of coverage is limited. Once you have reported the loss or theft of your credit card, you are responsible for only $50 of unauthorized use.
Q: We're going on a vacation soon. Will the belongings that we take with us be covered under our homeowners insurance policy?
A: Yes, your homeowners insurance policy will cover the belongings you take wit you. But keep in mind that if you are traveling with expensive jewelry, pricey photo equipment, or other high-value items, you should think about purchasing an endorsement (or rider) to extend coverage for these items.
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