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Your Brief Guide to Homeowners Insurance in New York

Homeowners insurance, also known as home insurance, is a necessity. It doesn’t just protect your home and belongings against damage or theft. It is also a requirement from mortgage companies for borrowers to have insurance coverage for the full or fair value of a property and won’t allow you to take a loan or finance you without proof of it. 

You don’t even need to own a home to need insurance as many landlords want their tenants to have renters’ insurance coverage. But whether or not it’s a requirement, it’s wise to have great home insurance. 

If you’re looking for the best homeowners insurance in NY, there’s an independent local company that can help. NY Insurance Hub is your one-stop shop for home and car insurance. Read more about them here. 

What a Homeowner’s Policy Provides

Although homeowner’s policies are very customisable, there are a few standard elements that provide what the insurance will be covering. 

Interior or Exterior Damage to Your Home

In the event of damage due to fire, hurricanes, vandalism or any other covered disasters, your insurer will compensate you so your home can be repaired or rebuilt if required. It is important to know that destruction or harm from floods, earthquakes or poor home maintenance is not often covered and you may need separate cover for these types of protection. Other structures separate from the home such as free-standing sheds or garages may need to be covered separately as well.

Oftentimes clothes, appliances, furniture and many other contents of your home are covered if they are destroyed in a manner outlined within your insurance. You can also get off-premises coverage so you can file a claim for lost jewelry even if you lose it away from your home. 

Personal Liability for Injuries or Damage

Liability coverage protects you from lawsuits filed by other people. This clause even covers any pets you may have.  So if your dog bites your neighbor, your insurer will pay for their treatment regardless of whether the bite is at your place or theirs. Or if your child breaks a neighbor’s vase, you can ask for compensation for them. And if that neighbor slips on your driveway and successfully sues for pain and suffering or lost wages, you too will be compensated for that as if someone had been injured on your property.

Hotel or House Rental While Repairs Are Done on Your Home

It doesn’t happen very often, but if you’re going to be away from home due to rebuilding or restoration, this is probably the best coverage to have. This portion of coverage, called additional living expenses, reimburses you for rent, hotel room, restaurant meals and other incidental expenses incurred while you wait to occupy your home. But before you reserve a set for something expensive, remember that the policy sets strict daily and total limits. Of course, you can increase your daily limits if you’re willing to pay more for coverage.

Different Types of Homeowners Coverage

Unfortunately, all insurance Is not created equal. Cheaper insurance usually means less coverage and expensive insurance usually means more coverage. With that in mind, here are some general types of homeowner’s coverage. 

Actual Cash Value

Actual cash value covers the cost of the house as well as the value of your belongings after deducting any depreciation. That is, the cost that things are worth vs the amount you originally paid for them. 

Replacement Cost

Replacement cost policies cover the actual cash value of your home and possessions without the deduction for depreciation, so you would be able to rebuild or repair your house up to the original value. 

Guaranteed/ Extended Replacement Cost/Value

The most comprehensive policy, this policy pays for whatever it costs to repair or rebuild your home, even if it’s more than your policy limit. Certain insurers also offer an extended replacement, and this means it offers more coverage than you purchased, but this is only usually 20-25% higher than the limit. 

What Isn’t Covered by Homeowners Insurance?

Home insurance covers many scenarios where loss can occur, but some common events are typically excluded from policies, such as acts of war or ‘acts of God’. 

If you live in an area with lots of flooding or hurricanes, or even earthquakes, you will want these added to your policy. You can also add sewerage and drain coverage, and even identity recovery coverage if you’re a victim of identity theft. 

How Are Homeowners Insurance Rates Determined?

There are a lot of factors that are taken into consideration when it comes to your homeowner’s insurance. This includes your neighborhood, the crime rate and even building material availability. This and coverage options such as deductibles or added notes for art, jewelry or more, all factor into the size of the annual premium. 

In addition to the above, the condition of your home can reduce a home insurance company’s offerings in terms of coverage. This is because a badly maintained home usually increases the odds that the insurer will have to pay out for damage. Dog breeds are even considered as some dogs can cause damage.

Now that you understand homeowners insurance more, it’s time to start shopping around. This can be time-consuming, but it’s important to know your local area and your budget before proceeding. 

NY Insurance Hub Agency

125 Wolf Rd STE 404 Albany,

NY 12205 518-783-0105

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