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

Related Articles
  1. Insurance

    What Is and Isn't Covered by Homeowner's Insurance

    Understanding what your insurance covers can be confusing. Learn what almost all insurance policies have in common so you're prepared if disaster strikes.
  2. Insurance

    Homeowner's Insurance Guide: A Beginner's Overview

    Everything new homeowners need to know about homeowner's insurance to protect their residence.
  3. Insurance

    Top 3 Cheapest Homeowners Insurance Companies

    When it comes to finding the cheapest homeowners insurance, it is worth taking the small amount of time required to comparison shop and find the best deal.
  4. Insurance

    12 Insurance Questions for High Net Worth Families

    High net worth families should ask themselves these 12 questions regarding comprehensive insurance.
  5. Insurance

    4 Reasons Why Waiting To Buy Life Insurance Is a Bad Idea

    Understand the benefits of applying for and securing life insurance coverage while you are young and healthy, and learn the cost of waiting to get coverage.
  6. Insurance

    How Much Car Insurance Do I Need?

    Find out to determine how much car insurance you actually need with this overview of the different types of coverage available in your policy.
  7. Managing Wealth

    6 Insurance Policies That Protect the Wealthy

    Here are six types of insurance that the wealthy use to protect their assets.
  8. Insurance

    Beginner's Guide To Auto Insurance

    Find the perfect policy that suits both your coverage and budgetary needs.
  9. Insurance

    How to Find the Right Car Insurance

    Get the most for your money and protect your assets and your health.
  10. Insurance

    How to Find the Right Car Insurance

    Finding the right car insurance can be difficult. However with these strategies, you can get the most for your money, protect your assets and your health.
Frequently Asked Questions
  1. What role does a correspondent bank play in an international transaction?

    Understand what a correspondent bank is and how it operates to facilitate currency exchange and financial transactions between ...
  2. What is the difference between consumer surplus and economic surplus?

    Learn the difference between consumer surplus and economic surplus, how the concepts are related and the important theoretical ...
  3. How much impact does government regulation have on the automotive sector?

    Learn about how government regulation affects the automotive industry in terms of design, safety features, fuel-economy and ...
  4. How can I buy an S&P 500 fund?

    Looking for access to the S&P 500? Learn how to access an S&P 500 index fund or ETF.
Trading Center