Question 1

What an umbrella policy does not cover?

Accepted Answer

An umbrella policy on top of your homeowner’s insurance can provide coverage for most liabilities. Keep in mind though, that it would never cover costs associated with your own being, such as: Your own injuries Intentional or criminal acts Damage to your personal belongings Any business you operate from your home In addition, it doesn’t cover anything excluded from your original insurance coverage. For instance, if a certain recreational vehicle is uncovered and you injure another party with it, the policy won’t pay for the associated liability.

Question 2

What does personal liability homeowner’s insurance cover?

Accepted Answer

This depends on the insurance package you purchase. In most cases, the following liabilities are covered:  Medical bills associated with a visitor’s injury at your residence  Bodily injuries or property damage unintentionally caused by you or your pet. Legal expenses relating to lawsuits seeking damages up to the amount defined by the policy

Question 3

What are the main types of property insurance coverage?

Accepted Answer

The 3 main types of property insurances are:  Actual Cash Value Coverage  This covers the repairs and replacement costs of your property minus the depreciation.   Replacement Cost Coverage  It covers the repairs and replacement costs of your property at its original purchase value regardless of how much the said property has been appreciated or depreciated since then.    Extended Replacement Cost Coverage  This is similar to replacement cost coverage, except it will pay over the coverage limits if the associated costs have increased. Typically, it is capped at 25% of the coverage limit.

Question 4

Which are the most popular home insurance companies?

Accepted Answer

Excellent financial strength, great customer service, long history, and good policy options are some of the hallmarks of a great home insurance company.  The most popular home insurance companies in the country are as follows:  Company  Market Share  State Farm  18% Allstate  8.4% USAA 6.6% Liberty Mutual  6.5% Farmers  5.7%

Question 5

How much homeowner’s insurance do I really need?

Accepted Answer

A piece of common wisdom is that the biggest risk you can take when buying homeowner’s insurance is not buying enough of it. You should buy enough homeowner’s insurance to completely cover the replacement cost of your dwelling as well as your personal belonging in the event of a disaster.  In the case of liability coverage, you should buy at least $300,000 – or more, if possible. With legal and medical costs today highly exorbitant (and rising), a small rise in the premium is worth it.  Lastly, when it comes to additional expenses, a rule of thumb is to set its coverage at 20-30% of your dwelling coverage amount.

Question 6

What if someone gets hurt on my property? What is my liability in that case?

Accepted Answer

What type of liability you incur when someone suffers an injury on your premise is dependent on a number of factors. This can include:  The visitor’s legal status (e.g. an invitee, social guest, or an unwelcome trespasser)  The state of your property (Has an effort been made to make it a safer environment)  Whether the injured party was an adult or a child  Whether both you and the visitor were at fault for the injury With some exceptions, premise liabilities can apply even if you are a tenant as the court presumes that your landlord, being not present at the premise, does not have adequate control over it, and thus, not to be held accountable.

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