Homeowners Insurance Basics

Your home is likely one of your most valuable assets. Homeowners insurance provides essential protection for your property, belongings, and financial security.

What Homeowners Insurance Covers

Dwelling Coverage

Protects the physical structure of your home, including:

Walls, roof, and foundation

Built-in appliances

Attached structures like garages

Personal Property Coverage

Covers your belongings inside and outside your home:

Furniture and electronics

Clothing and jewelry

Appliances and tools

Items in storage units

Liability Protection

Covers you if someone is injured on your property or if you accidentally damage someone else's property.

Additional Living Expenses

Pays for temporary housing and living expenses if your home becomes uninhabitable due to a covered loss.

Standard Coverage Types

HO-1: Basic Form

Limited named perils coverage (least comprehensive).

HO-2: Broad Form

Covers your dwelling and belongings for specific named perils.

HO-3: Special Form (Most Common)

Covers your dwelling for all perils except exclusions, and belongings for named perils.

HO-5: Comprehensive Form

Covers both dwelling and belongings for all perils except exclusions (most comprehensive).

What's Typically Not Covered

Standard homeowners insurance usually excludes:

Floods (requires separate flood insurance)

Earthquakes (requires separate earthquake insurance)

Normal wear and tear

Intentional damage

Certain high-value items (may need additional coverage)

Understanding Deductibles

Your deductible is the amount you pay out of pocket before insurance kicks in. Common options:

**Fixed dollar amount**: e.g., $500, $1,000, $2,500

**Percentage of dwelling value**: e.g., 1% or 2%

Higher deductibles typically mean lower premiums, but you'll pay more if you file a claim.

Replacement Cost vs. Actual Cash Value

**Replacement Cost**: Pays to replace items at current prices (no depreciation)

**Actual Cash Value**: Pays replacement cost minus depreciation

Replacement cost coverage is more expensive but provides better protection.

Factors Affecting Premiums

Home value and location

Construction materials and age

Security systems and safety features

Claims history

Coverage limits and deductibles

Tips for Homeowners

1. **Review your policy annually**: Ensure coverage keeps pace with home improvements

2. **Document your belongings**: Keep photos and receipts for valuable items

3. **Understand your coverage**: Know what's included and what requires additional policies

4. **Consider flood insurance**: Even if not in a high-risk zone, floods can happen anywhere

5. **Bundle policies**: Combine with auto insurance for potential discounts

Getting the Right Coverage

Every home and homeowner is unique. Work with Chris Carson Insurance Agency to customize a policy that protects what matters most to you at a price that fits your budget.