The Basics on Homeowner’s Insurance

Homeowners Insurance pays to repair or rebuild your home if it is damaged or destroyed against a loss due to fire, burglary, hail, lightening, accidents or other disasters listed in your policy.

A standard Homeowner’s Insurance policy will not cover damage caused by an earthquake or flood. If you live in an earthquake or flood zone, you will need to get a separate earthquake and or flood insurance policy.

Most standard policies include the following key types of coverage:

· Dwelling Coverage is the structure of your home and anything attached to the structure itself, rooms, floor coverings, attached garage, deck or porch. It also includes any built-in appliances you may have.

· Other Property includes detached structures on your property such as a detached garage, gazebos and storage sheds.

· Personal Belongings the stuff you own which includes clothing, furniture, sporting equipment, electronics, appliances, kitchen Items, etc.

· You have a choice between actual cash value or replacement value for your personal property.

Replacement value costs more than actual cash value because it reimburses you the full amount you pay to replace an item. Actual cash value will depreciate the item and pay you what it is worth. (Please note, if you have pricey items such as jewelry, artwork, rugs, expensive electronics, sports memorabilia, etc. you will most likely need a separate endorsement or a rider for those items.)

· Liability Coverage will protect you against lawsuits for guests who are injured in your home or on your property.

· Additional Living Expenses provides compensation to you when you are unable to live in your home or dwelling due to a loss or claim, while your home is being rebuilt or repaired. This also includes meals and or other living expenses. (Know that this policy has limits and some even have time limitations.)

What Else You Need to Know

· Be sure you have enough coverage to rebuild your home, instead of the market value.

· When requesting a home insurance quote, ask whether you should add your expensive items under a separate endorsement.

· Don’t rely on the most basic coverage.

· Always read the exclusions of your homeowner’s policy. It is as important to know what is not covered as it is to know what is covered by your policy.

Call Motz-Rusin Insurance Agency @ 760-564-3888 or go to for any questions regarding Homeowner’s Insurance.

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This article is for informational purposes only and does not provide details of a Basic Homeowner’s Insurance Policy.