Homeowners Insurance Law

Homeowners insurance policies typically contains the following types of insurance protection:

  • Coverage A – Dwelling
  • Coverage B – Other Structures
  • Coverage C – Personal Property
  • Coverage D – Loss of Use
  • Coverage E – Personal Liability
  • Coverage F – Medical Payments to Others

Coverage D provides limited coverage (typically 20$% of Coverage A’s limit of insurance) for additional living expenses to the extent the policyholder cannot live in his or her home as the result of covered loss (e.g., housing, meals and warehouse storage).

Losses caused by the following are generally within the scope of coverage:

  • Fire or lighting
  • Windstorm or hail
  • Explosion
  • Riot or civil commotion
  • Aircraft
  • Vehicles
  • Smoke
  • Vandalism & malicious mischief
  • Theft
  • Volcanic eruption
  • Falling objects
  • Weight of ice, snow, sleet
  • Sudden & accidental water damage
  • Breakage of glass

Losses caused by the following are generally not within the scope of coverage under a homeowners policy:

  • Flood
  • Earthquake
  • Earth movement
  • Termites
  • Insects, rats or mice
  • Water damage cause by seepage or leaks
  • Losses to house vacant for 60 days or more
  • Wear and tear or maintenance
  • Insurrection
  • Tidal wave
  • Neglect
  • Nuclear hazard

Generally, the law does not require that an individual procure homeowners insurance; however, most lenders require the procurement of homeowners insurance for damage caused by unforeseen circumstances such as fires or natural disasters.

Declarations Page — Usually the first page of your homeowners insurance policy, it typically contains the following summary information:

  • Name and address of the insured
  • Dollar amount of coverage in the policy
  • Description of the insured property
  • Cost of the insurance
  • Name of the insurance company insuring the risk
  • Contact information

Definitions — Explain the meaning of terms used in the policy.

Coverage — Details the extent of protection for both property (house, structures, contents) and liability (bodily injury or property damage to others for which you are liable) in your homeowners insurance policy.

Exclusions — Explanation of what is not covered by your homeowners insurance policy, under both property and liability coverage.

Conditions — Outline the responsibilities of both the insured and insurance company under the policy. Your duties in the event of a loss and also the procedures the company will follow to settle any losses are detailed here.

Endorsements — Riders, amendments or attachments that alter the standard coverage provided by your home insurance policy. If you choose endorsements for your policy, you may pay an additional premium for them.

A public adjuster is an insurance claim adjuster who represents and advocates for the policyholder in appraising and negotiating an insurance claim.