FAQs
| Q: | What is homeowners insurance? |
| A: | Homeowners insurance is a form of personal lines insurance. The typical homeowners policy has two main sections: 1) covers the property of the insured and 2) provides personal liability coverage to the insured. |
| Q: | What do I need to know when purchasing homeowners insurance? |
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| Q: | What is “actual cash value”? |
| A: | When “actual cash value” is used in a policy, a policy owner is entitled to the depreciated value of the damaged property. |
| Q: | What is replacement cost”? |
| A: | When “replacement cost” coverage is used in a policy, a policy owner is reimbursed an amount necessary to replace the article with one of similar type and quality at current prices. |
| Q: | Where and when is my personal property covered? |
| A: | Coverage C of a homeowners policy provides named perils coverage. This applies to all your personal property (except property that is specifically excluded). |
| Q: | Should I purchase earthquake coverage? |
| A: | Direct damages due to earthquakes are not covered under the standard homeowners insurance policy. If you live in an area that is prone to earthquakes, you may want to consider adding an earthquake endorsement to your homeowners insurance policy. This endorsement will cover damages due to earthquakes, landslides, volcanic eruptions and other earth movements. |
| Q: | Should I purchase flood coverage? |
| A: | While most people agree it is important to purchase flood insurance on properties inside flood zones, 25 percent of all flood claims are paid on properties outside official flood zones. Most property insurance excludes loss from flood. We recommend all property owners consider a separate flood insurance policy. |