Homeowners Insurance

What is homeowners insurance? (source: Connecticut Insurance Department)
Homeowners insurance provides financial protection against disasters. A standard policy insures the home itself and the things you keep in it. Whether you are a homeowner or renter, home insurance offers important protection. See our Insurance Glossary for a list of common terms.

• Homeowners insurance: protects your home’s physical structure and your personal property.
• Renters insurance: only protects your personal property.  Never assume that the landlord’s insurance covers you or your belongings. Landlord’s insurance only protects the building.
• Everyone – homeowners and renters – needs protection against liability for accidents that injure other people or damage their property.

The different types of protection:

• Damage to House:  Covers damages to the house itself up to the face amount of the policy.  For example, if the face amount is $100,000, that’s the most you will receive if your house is totally destroyed, less any deductible.
• Other Structures:  Covers damage to other structures or buildings, such as a detached garage, work shed or fencing.
• Personal Property:  Covers damage to – or loss of – personal property. Personal property includes household contents and other belongings. Certain items like jewelry, antiques and artwork may need special added coverage.
• Additional Living Expenses:  Covers the necessary living expenses, up to the stated limit, when the house cannot be occupied due to a covered loss.
• Comprehensive Personal Liability:  Protects you against claims arising from accidents to others on property that you own or rent. With a few exceptions, such as auto or boating accidents, it is an all-purpose liability coverage that follows you wherever you go.
• Medical Expenses: Covers medical expenses, but is limited to an amount per person and per accident for injuries occurring on your property to persons other than an insured.  It also may cover medical expenses away from your premises if caused by you, a member of your family, or your pets.
• Flood Insurance: Coverage for damage caused by flooding is NOT included in your homeowner’s policy. If you live in an area prone to flooding from any cause, be sure to inquire about purchasing flood insurance, which is available through the federal government’s National Flood Insurance Program. For more information please visit our Flood Insurance Page or the National Flood Insurance Program site at www.floodsmart.gov.

Homeowners insurance is a package policy. This means that it covers both damage to your property and your liability or legal responsibility for any injuries and property damage you or members of your family cause to other people. This includes damage caused by household pets.

Damage caused by most disasters is covered but there are exceptions. The most significant are damage caused by floods, earthquakes and poor maintenance. You must buy two separate policies for flood and earthquake coverage. Maintenance-related problems are the homeowners' responsibility.


Why do you need homeowners insurance?
It is really all about protecting yourself financially if something unexpected happens to your home or possessions. That's important because chances are your home is likely one of your largest investments.

• If your home was destroyed by fire or damaged by a natural disaster, you'd need money to repair or replace it. If a guest in your home is injured, liability protection and medical coverage help pay expenses.
• If you are a victim of theft and vandalism, it can reimburse you for your loss or pay for repairs.
• If you are still paying for your home, your lender will require insurance.

It is important to know that homeowners insurance is meant to cover unexpected damage, not routine maintenance. Ask your agent to talk about what is covered and be sure to read your policy so you know exactly what's included and what is not.

Things to consider and questions to ask your agent
Here are few things to discuss with your agent that will influence your decisions.

• How much will it cost to rebuild my house and replace my belongings if they are damaged or destroyed? (Ask your agent to talk you through your home's features and the things you own so you can make an informed decision about coverage.)
• Does the insurance company have a good reputation for customer service? Is it known for paying claims fairly and promptly?
• What discounts are available? (Ask about multiple policy, security system and fire resistance discounts.)
• What's the process for filing and settling a claim? (Ask who to call and what happens after you file a claim.)

What affects premiums? (source: Connecticut Insurance Department)

• Age of the home. Older homes generally cost more to insure
• Type of structure, i.e. brick, frame, stone or synthetic siding
• The condition and age of the wiring and roof
• Presence or absence of a garage

• Proximity to a fire station
• Exposure to extreme weather (hurricanes, tornadoes, hail storms or earthquakes)
• Neighborhood prone to theft

• Non-smokers may pay less than smokers
• Credit history of homeowner/renter
• Claims history. Consider withholding claims for small events to avoid premium increases
• Deductibles – the lower the deductible, the higher the premium

Additional Information
The Connecticut Insurance Department has information on their website such as FAQ's and guides. Click Here to view.