Smart homeowners in Ohio know they should insure their home in case the unexpected happens. Your home is usually the most significant financial investment you will make, and its loss due to fire or another hazard can destroy your financial wellbeing. Buying homeowners insurance is therefore necessary.
A good homeowners policy offers various protection options that allow you to craft coverage to fit your unique needs. East Street Insurance offers many policy options that every Ohio resident should consider.
What are the basic homeowners coverages?
The standard homeowners policy is also known as an HO-3. This homeowners policy can cover these areas:
Property Damage (Coverages A, B and C).
The protection is from perils such as fire, wind or hail. Within the definition of property damage, there are three distinct categories.
Coverage A: This is for the dwelling or the house’s physical structure.
Coverage B: Other structures that are unattached such as a garage, shed or fence.
Coverage C: Personal property. This is for the private personal property that you own. It can include furniture, clothes, and kitchen appliances. Basically, any item that you would take with you if you decide to move.
Loss of Use (Coverage D). The damage to a home from a covered loss, such as fire, can be extensive. It is possible that you might not be able to live in the house for some time, especially if there is damage that requires reconstruction. This coverage is for the additional living expenses you incur to help your household maintain its normal standard of living while your home is uninhabitable. Reasonable living expenses are available if a covered loss forces you to be displaced from the home.
Personal Liability (Coverage E). Having an accident occur in your home is terrible, but bodily injury or property damage lawsuits that result could make the situation worse. Coverage E protects you against claims arising from accidents to others on property that you own or rent up to the amount specified in the policy., with some exceptions, such as vehicle or boating accidents
Medical Payment Coverage (Coverage F). If a guest, or someone who does not live in the home, is accidentally injured on your property, he insured can utilize coverage F to pay for medical treatment expenses.
How are values calculated for a homeowners insurance policy? The insurance industry uses two variables to determine how much you would need to replace your home in the event of a loss.
Replacement Value means you could be provided with what it would cost to replace structures or damaged items similar to the previous construction prior to the loss. A door would be replaced with the same durability as the original one, and furniture is replaced with pieces similar to the original.
Actual Cash Value:
The market value of your home and personal property takes depreciation into account when calculating value. Although you may have what was once a piece of costly computer equipment, depreciation over the years may reduce the value so that its actual cash value is a fraction of the original cost.
What is not covered?
What will homeowners insurance not cover? Here are some things a homeowners policy does not typically cover:
Damage due to lack of maintenance
A classic example of this is termite damage due to neglect. Another example is black mold growth caused moisture, unless the mold is caused by a covered peril such as the sudden rupture of a water heater.
Insurance companies may not cover an injury sustained by an attack by dogs of a certain aggressive breed. Be sure to check with your insurance agent to learn what breeds may present more of a risk to the homeowner.
Floods and earth movements
A homeowners policy does not cover flood damage because specific flood insurance can be purchased separately, normally through the National Flood Insurance Program. Earth movements are landslides, sinkholes and earthquakes are normally excluded, too. Ohio rarely has earthquakes, but flood damage can happen, so checking to see if your home is in a special flood hazard area may not be a bad idea.
Water Backup can result from tree roots, stormwater, the blockage of the sanitary main or an old sewer system. Homeowners, however, can usually purchase separate coverage endorsements for this peril.
Your grandmother’s engagement ring might be precious to you, but it may not be to the insurance company if you don’t purchase additional coverage for the ring. The risk of theft of precious jewelry is remarkably high, and coverage is ordinarily set to a specific limit. You can normally purchase an endorsement on the homeowners policy for jewelry if you have it appraised.
Homeowners insurance is not all-inclusive.
Something to remember about homeowners insurance is that it is not meant to pay for maintenance issues, The standard, unendorsed homeowners policy will not cover issues typically brought on by the owner’s neglect, such as:
- Insect and termite damage
- Bird or rodent damage
- General wear and tear
- Smoke or smoke resulting from industrial or agricultural operations
- Mechanical breakdowns
- Food spoilage resulting from a power outage
So many decisions
Can you shop around for homeowners insurance in Ohio? You can, and the good news is that HO-3 policies are reasonably priced in Ohio. The challenge is the amount of coverage you need. Although your lender will normally require insurance equal to the size of the mortgage, there are other coverage considerations made: such as watercraft coverage, if you own a boat, or extra protection for valuables, which may be necessary. What is the best thing an Ohio homeowner can do to guarantee the best homeowners policy?
East Street Insurance believes people should be able to get cost-effective policies from an experienced insurer. Homeowners insurance is not always easy to figure out. We provide the assistance you need to get the proper coverage.
Have an insurance problem? We will help you solve it! Have a question that no one seems to be able to answer? We will answer it! East Street Insurance has several products that can make your homeowners insurance coverage more comprehensive. We will work together as a team to help you craft an insurance package that you can rely on.
We do our absolute best for our customers in Ohio, and we appreciate all the kind words they say about us. We want to tell you more about East Street Insurance. Please feel free to contact us at your convenience.