There is no place like…homeowner insurance new home

The old adage taken from an old movie remains true. There is no place like home. If you own property like a house and personal belongings (or contents in insurance lingo), you absolutely need homeowners insurance and the security that it brings. As a type of property insurance, a homemeowners policy covers many aspects of your property and it covers you as the owner of the house. If the policy is written with replacement cost, it will pay in the event your home needs to be replaced (as well as your personal property) following a fire or other catastrophic event as listed in the policy.

If someone is injured at your home (excluding those who live there) and files a lawsuit against you for damages, your homeowners policy will be a line of defense for you. In this homeowners policy review, you will be reminded that  your property coverage is listed in four distinct sections. Because the descriptions of property and coverage descriptions vary from state to state, you as the customer, need to fully understand the definitions of covered properties.

Four Sections of Homeowner Insurance Coverage

The four sections of your homeowners insurance policy coverage as defined by most insurance companies:


This is the structure itself (also known as the home, house, or dwelling) which is considered a covered property.

Other Structures

These are any structures that are not attached to the dwelling. They are separate or they are connected to the dwelling simply by a fence, wire, or minor connection. These are most often structures such as detached garages or sheds of some kind.

Personal Property

Your personal property is defined as the contents of your home such as clothing, furniture, and appliances. All property that you might deem personal is not necessarily covered. Property like jewelry, guns, and money have limited or no coverage if they are lost or stolen. This issue can be solved by covering these items with specifed riders which define exactly what items are listed for coverage.

Loss of Use

If you should suffer a loss from a peril covered by the policy and your dwelling is not inhabitable, you will very possibly run into expenses associated with having to live elsewhere. Those expenses would be considered additional living expenses. You, as the insured, will receive reimbursement from the policy for what it cost to maintain a usual and customary standard of living while you were not able to be in your dwelling.

Policy Ratings and Types

There are many factors that come together to make a rate for a homeowners policy. The quality or the rating of the insurance company is what determines the quality of its insurance policy. These policies are offered to the consumer on an all risk basis or a named peril basis. An all risk policy covers all risks unless the risk is specificaly named and disqualified in the policy. If it is a named perils policy, it will cover claims due to the risks that are listed specifically in the insurance contract. Obviously, coverage on an all risk policy is much broader than on a named perils policy. Furthermore, with an all risk policy, the insurance companyi is tasked with the burden of proof when a loss occurs. You are not!

Who Needs Homeowners Insurance

The next question on this subject might be-who needs a homeowners insurance policy? Well, once a lender has allowed a homeower to borrow money, they require that their interest in the property be satisfied with a home insurance policy. The lender or the mortgage company wants you to have the financial ability to repair damages caused by covered risks.

Sometimes homeowners don’t like to have to buy insurance to cover the home due to the expense. However, homeowners insurance is the prudent way to go. Making a home purchase is an enormous investment. Not only does the lender need their interest in the propery protected, but so do you. Thus, The best thing to do is to carry a comprehensive homeowners policy. Look for a policy that covers even more than the lender requires.

Protect Your Greatest Asset

For most people their home is their greatest asset. For more information on homeowners insurance, contact the Mallory-Tate Agency today. Our insurance professionals have the answers to your insurance questions.