Homeowners Insurance FAQ’s?
Below is a list of frequently asked questions about homeowners insurance. If you have questions that aren’t answered in this
FAQ, please contact The insurance Suite and a licensed insurance representative can assist you.
What factors can affect homeowners insurance premiums?
The following factors can affect your homeowners insurance premium:
Am I required to have homeowners insurance if I own a home?
Unlike driving a car, you can legally own a home without homeowners insurance. However, if you finance your home with a
mortgage, your lender most likely will require you to have home insurance coverage to protect your home in case of damage
cause by unforeseen circumstances, such as fires or natural disasters.
If you live in an area that is prone to flooding or earthquakes, your lender may also require you to purchase flood insurance or
If you purchase a condominium or co-op, your board may require you to buy condominium insurance or home insurance. Be
sure to check with your board to see what type of policy is required.
After you pay off your mortgage, you aren’t required to have home insurance. However, you should keep your home insurance
policy active to avoid risking what you’ve invested in your home.
Why should I complete a home inventory?
When you purchase a home and a homeowners insurance policy, you should create an up-to-date home inventory to expedite
a claim settlement if you ever need to make one. With a complete home inventory, your insurance company can verify property
easier, which makes settling your claim easier. Plus, you can easily verify losses for your income tax return with an updated
How do I complete a home inventory?
Start your home inventory by making a list of your possessions, describing each item, and noting the make and model and
where each item was purchased. Include sales receipts, purchase contracts and appraisals if you have them, too. Organize
clothing into categories for easier reference.
A few home inventory organization tips:
What’s the difference between canceling and nonrenewing a homeowners insurance policy?
Canceling a homeowners insurance policy and choosing not to renew it are two very different actions an insurance company
Typically, insurance companies can only cancel an active policy if one or all of the following occurred:
Nonrenewing a homeowners insurance policy is a decision you or your insurance company can make to discontinue coverage
at the end of a policy term. Depending on your state, if your insurance company chooses to nonrenew your policy at the end
of the policy term, it must notify you and provide an explanation within a specified time period. You can contact your company’s
consumer affairs division if you disagree with the reason or want further explanation.
What parts make up a homeowners insurance policy?
Although homeowners insurance policies differ in their actual structure, most contain the same basic components:
Declarations Page — Usually the first page of your homeowners insurance policy, it typically contains the following summary
Definitions — Explain the meaning of terms used in the policy.
Coverage — Details the extent of protection for both property (house, structures, contents) and liability (bodily injury or
property damage to others for which you are liable) in your homeowners insurance policy.
Exclusions — Explanation of what is not covered by your homeowners insurance policy, under both property and liability
Conditions — Outline the responsibilities of both the insured and insurance company under the policy. Your duties in the
event of a loss and also the procedures the company will follow to settle any losses are detailed here.
Endorsements — Riders, amendments or attachments that alter the standard coverage provided by your home insurance
policy. If you choose endorsements for your policy, you may pay an additional premium for them.