Property, Casualty and Liability Insurance - Introduction to Personal Insurance

Homeowners Insurance
Home insurance, also commonly called hazard insurance or homeowners insurance (often abbreviated in the real estate industry as HOI), is the type of property insurance that covers private homes. It is an insurance policy that combines various personal insurance protections, which can include losses occurring to one's home, its contents, loss of its use (additional living expenses), or loss of other personal possessions of the homeowner, as well as liability insurance for accidents that may happen at the home.

Let take a look at the various coverage areas with sample limit of liability:

SECTION I Limit of Liability

Coverage A: Dwelling
Coverage B: Other Structures
Coverage C: Personal Property
Coverage D: Loss of Use

$250,000
$25,000 (10% of A)
$125,000 (50% of A)
$50,000 (20% of A)
SECTION II

Coverage E: Personal Liability
Coverage F: Medical Payments

$100,000 each occurrence
$5000 each person; $15,000 each
  • Deductible- Section I: $1,000 loss deductible

Coverage A: Dwelling
Dwelling covers the residence and any other structures attached to the residence such as decks, fences, garage, and materials located on the premises for construction, repair, or alteration of the residence or other structures on the premises. Land is specifically excluded from Coverage A. Coverage on the dwelling is on a replacement cost basis provided that the amount of insurance coverage is 80% of the replacement cost of the building.

Coverage B: Other Structures
Other structures insures additional structures on the premises such as a detached garage, swimming pool, patio, or separate living space (in-laws-quarters). The limit on this coverage is generally 10% of the amount of insurance on the dwelling.
Hazard Insurance


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