Home Insurance encompasses more than just homeowners
Home insurance goes beyond just covering homeowners; it also includes renters' insurance.
Homeowners Insurance
The homeowner’s declaration page is made up of two sections and six coverages.
Section 1 includes Coverages A, B, C, and D.
Coverage A—Dwelling—is the amount of insurance you’re purchasing to cover your home, for example, $200,000.
Coverage B—Other Structures—covers detached structures like sheds or garages, set at 10% of Coverage A, so $20,000 in this case. Coverage C—Personal Property—provides protection if your belongings are damaged, such as in a fire, and is typically 50% of Coverage A. Coverage D—Loss of Use—helps pay for extra lodging and food costs if you’re forced to live somewhere else, like a hotel, while your home is being repaired.
Section 2 includes coverages E and F
Coverage E-Personal Liability- Provides financial protection if you or a household member are found legally responsible for accidentally injuring someone or damaging their property.
Coverage F-Medical Payments to Others- Covers medical expenses for guests injured on your premises, or away from your home if caused by you, without need to determine legal liability.
Most standard homeowners policies are issued on either the HO-3 or HO-5 form, with the HO-5 generally costing more than the HO-3.
Renters Insurance
Renters insurance protects tenants by covering personal property against theft or damage
Typical coverages include:
Personal Property-Reimburses you for belongings like furniture, electronics, clothing, and appliances, even if the items are stolen outside of your home.
Liability Protection-Covers legal fees and damages if you, your family, or pets, are responsible for injuring someone or damaging their property
Additional Living Expenses-Covers expenses like hotels, food, and other costs if you must move out of the house temporarily due to a covered loss.
Guest Medical Coverage-Pays medical bills for guests injured on your property, regardless of fault.
The renter’s insurance is issued under an HO-4 policy.
Manufactured Homes
Manufactured home insurance differs from regular homeowners insurance because it’s based on actual cash value (ACV) rather than replacement cost, and it covers unique risks for factory-built homes, like transit damage. Since these homes are more vulnerable to wind and fire, premiums are often higher, and policies are customized to the home’s age, construction, and foundation type. Coverage limits may be lower than those for traditional homes, and insurance for manufactured homes—especially in mobile home parks—can vary from that for homes on private land or standard foundations.
The HO-7 form is designed for manufactured homes, offering protection for both the home’s structure and the personal property inside.