Homeowner insurance policies generally cover destruction and damage to the interior and exterior of a home, the loss or theft of possessions, and personal liability for harm to others. Sometimes called home coverage, this part of the policy covers physical damage to the home itself. This section includes damage to walls, ceiling, floor, or doors. The foundations of your house and other parts that may not necessarily be visible are also covered.
Starting with Hurricane Andrew in 1992 and, more recently, with Storm Sandy, New York homeowners insurers have seen their exposure to storm damage increase steadily, as coasts have become more populated and property values have increased. A personal franchise policy protects you from judgments in lawsuits that exceed the protection of your main policy (homeowners, renters, cooperatives, or condominiums). Coverage is available through certain property insurers under a separate policy or as a backup to an existing policy. For a minimal additional cost, you can increase the coverage of your content without increasing the amount of home insurance itself.
Documenting the belongings you own is critical to getting the most out of your home insurance protection. The most important coverage usually offered is full coverage of the costs of replacing your roof, with no deduction for depreciation. These are coverages you don't usually think about when buying home insurance, but it's important not to forget them if you would benefit from having coverage. However, if you have a dog that is considered a dangerous animal, such as a pitbull, the company may exclude coverage for that pet or offer coverage for an additional premium.
This coverage is available under a separate policy issued through the National Flood Insurance Program (NFIP). It's also important to regularly review your existing insurance policies to make sure they offer adequate coverage. Because this is a catastrophic type of coverage, policies usually have a high deductible as a percentage of the replacement value of the insured structure, which can range from 10 to 25%. If you provide child care services and receive compensation for this work, you are considered to be employed in a commercial company and must purchase additional coverage.
Others don't have a spending limit, but only offer coverage for a limited period after an incident. Generally, all homeowner policies insure you for your personal liability when another person suffers bodily injury or property damage as a result of your negligence or the negligence of someone who is insured under your homeowners policy. Insurance coverage for losses resulting from floods or landslides is not provided in standard policies for homeowners or units.
