Homeowners Equine Insurance offers protection for your house and personal possessions against damage from a variety of perils. The top homeowners insurance companies rating offer excellent customer service, great coverage options and plenty of discounts.

There are several types of home insurance policies to choose from, with each offering different levels of coverage. The most common is a standard HO-3 special form policy that offers dwelling, personal property, and personal liability protection. This type of policy includes open peril, which covers all events unless excluded, and named peril coverage, which limits losses to those specifically listed in the policy.

A standard HO-3 policy typically provides up to 20% of your home’s replacement cost for the dwelling structure, minus any applicable deductible. Additionally, it will pay to repair or replace any fixtures and appliances that were damaged by a covered disaster. In addition to the dwelling structure, many homeowners choose to add additional coverages, such as other structures (like a shed or fence), personal property, medical payments, loss of use and umbrella liability. Some insurers also offer separate flood and earthquake policies.

The amount of coverage you need will vary depending on the value of your home, but most lenders require that you have enough dwelling coverage to cover your mortgage, plus some extra for repairs or a replacement in the event of a major disaster. The best way to determine how much coverage you need is to work with a certified home appraiser.

Other common home insurance policies include HO-4, which was created for renters and protects personal property and liability but doesn’t provide dwelling coverage; HO-5, which is an open homeowners policy that has higher limit options for personal property and liability; and HO-8, which is designed to cover mobile homes.

Homeowners who want to further customize their coverage can add specialized riders for valuable items such as artwork or jewelry. However, these will usually increase the premium and may have a maximum coverage limit. Other factors that will impact your home insurance rates include your neighborhood’s crime rate, the age of your home and the construction materials used in its building. Additionally, a history of claims made against your home can affect your rate.

A home owner’s insurance policy does not usually cover damage caused by a flood or an earthquake, which must be purchased separately through the federal government. It also does not typically cover damage that could have been prevented, such as a burst pipe due to neglecting maintenance or overusing an appliance.

Exclusions

Homeowners insurance is designed to protect you against sudden and accidental damage, like a storm causing a tree to fall on your house. However, a standard policy excludes certain things, like termites and mold. These types of problems can be quite costly and may not be covered by a standard policy. However, some companies offer separate coverages for these issues. These extra coverages are called riders and can be added to a standard homeowner’s insurance policy.

Most policies also have exclusions for floods and sewer backups. These types of damages can be very expensive to repair and may not be covered by a standard homeowners’ insurance policy. But many companies do offer protection for these damages by way of an optional coverage rider that can be added to a standard home insurance policy.

Other exclusions include damage caused by the use of hazardous materials or illegal activities. These types of damage are typically excluded because they could be preventable. For example, if your kids have a sleepover and decide to jump on their trampoline, it can be very dangerous. If one of them falls off, they could be seriously injured. As such, this activity is often flagged by insurers as a possible reason to void your homeowner’s insurance policy.

Acts of war and nuclear accidents are often expressly excluded from your policy as well. This is because these events are so catastrophic that they would require an entire new rating metric for your policy to cover them.

A typical policy will also not pay to upgrade your house to current building codes if this is required after a disaster. This is because the cost of upgrading your home to meet these standards is a direct result of the damage that was caused by the disaster.

Some other common exclusions are landslides and sinkholes. These are typically covered by an earthquake or flood insurance policy that you can purchase separately from your homeowner’s policy.

Deductibles

Deductibles are one of the key factors that homeowners must consider when selecting a home insurance policy. The deductible is the amount you must pay out of pocket on each claim, and it is typically a percentage of the insurance policy’s coverage limit. Generally, the higher the deductible, the lower the premium. However, homeowners must weigh the long-term financial implications of their choice carefully. For example, raising the deductible to $5,000 can significantly cut homeowners insurance rates but would require a larger sum out of pocket in the event of a claim.

Insurance companies typically offer multiple deductible options, and it is the responsibility of the homeowner to select the right one for their financial situation. A common mistake is to focus solely on reducing the premium, forgetting that the out-of-pocket costs should also be taken into account.

The inverse is also true. A low deductible often leads to expensive premiums, and even though the out-of-pocket cost may be small, it can add up over time. It is recommended that homeowners obtain quotes based on various deductible levels to find the “sweet spot” of affordability and adequate coverage.

In addition to standard home insurance policies, some companies offer a number of optional endorsements that increase the coverage of specific items or events. For example, some policies include a water backup protection endorsement that pays for damage caused by sewage back-up, while others offer shingle matching programs or appliance insurance. In addition, some insurers will allow customers to purchase extra property protection coverage for valuable items like jewelry and fine arts.

Other additional coverages include a loss control service, which offers free safety inspections and advice to prevent losses, and a mortgage life insurance policy that provides death benefits to the heirs should the owner die while still living in the house. Other options may be available depending on the state and the individual insurance company.

Some states require that homeowners have a separate deductible for hurricane damage, while others may incorporate the deductible into the standard home insurance policy. In either case, the deductible is paid before the insurance company will begin to pay on a claim.

Policy Limits

Policy limits are the maximum amount of coverage available to you for a single claim under an insurance policy. They may be specified as individual, per-claim or aggregate limits and are contractually agreed upon at the time a policy is written. We can help you to determine the appropriate levels of coverage for your needs.

Your dwelling coverage limit should be high enough to cover the cost of rebuilding your home at today’s labor and material costs in the event of a total loss. In addition you should consider having sufficient personal property coverage to replace your belongings and a medical payments limit to pay for injuries to people who visit your home, even if you are not at fault. You can discuss your options with your insurance producer or agent.

Other structures on your property (such as sheds, barns and detached garages) are typically covered at a percentage of the dwelling coverage limit. Check with your agent or company to make sure the amounts are adequate.

The amount of liability coverage you select is also important. In the event of a large claim, you want to be certain that your liability coverage is high enough to protect your assets and allow you to pursue justice. If your net worth is significantly above the $100,000 limit offered in most standard homeowners policies, you should consider obtaining an umbrella policy to provide additional protection.

If the amount of a claim exceeds your policy limits, you may be required to pay for the difference. If your policy has an inflation guard endorsement, the coverage amount will automatically increase by a pre-determined percentage each year to ensure that it remains at least 80% of current replacement cost.

If your insurer refuses to negotiate in good faith after you have made a reasonable settlement demand, we can file a bad faith lawsuit and a policy limit demand with the insurance company. The law requires the insurance company to make a good-faith attempt to settle after receiving a reasonable offer. If they do not, we can recover damages and reimbursement for you.