Homeowner's Insurance in North Carolina
There is no greater single investment for the majority of Americans than buying a home. Protecting this investment is equally important. Take the time before you decide on an insurance policy to familiarize yourself with the many variables involved in homeowner's insurance. The more you know, the better your ability to choose the optimal amount of insurance for your home.Though not required by law, most financial institutions require homeowner's insurance, if you are financing your home. Most mortgage companies require an insurance policy that covers at least 80% of the home's replacement value.
Types of homeowner's insurance
- Type A (dwelling) - This type of homeowner's insurance covers the majority of potential loss to your home. This insurance covers the main structures as well as the fixtures within the home including permanent air conditioning and heating systems, electrical wiring, plumbing, and any material deemed necessary for the repair or construction to the home. Under this type if insurance, "acts of God" such as flooding and fire are not covered.
- Type B (other structures) - This type of insurance covers structures on your property, but are not attached to the main structure of the home. For example, this form of insurance covers a detached garage used as a workshop. While this form only pays out ten percent of type A, it may be a wise idea to purchase additional coverage to meet at least 80% of the detached structure's value.
- Type C (personal property) - Type C insurance protects the personal property in your home. The amount and type of coverage varies, but traditionally does not cover easily perishable property such as cash, pictures, and documents.
- Type D (loss of use) - In the event that your home can no longer be used as a dwelling, type D insurance covers necessary expenses such as temporary housing, meals, and property storage. This type of insurance is also subject to limitations. Talk with an insurance agent to ensure that you are properly covered.
- Type E (personal liability) - If a resident of your home, including yourself, is legally responsible for the injury of another , this type of insurance covers medical expenses as well as pre-determined damages established by your insurance provider.
- Type F (medical payments to others) - If a visiting party is accidentally injured while on your property, this type of insurance covers medical expenses. However, this form of insurance does not cover medical costs for the primary residents of your household.
Determining the amount of homeowner's insurance is not an exact science. However, there are a few simple guidelines. To begin, calculate not only the value of your home, but also what it costs to replace it. When you know those costs, you can choose to insure its value or cost of replacement. You should also carry additional coverage such as flood or fire insurance depending on your area. Talk with an insurance agent today to see what type and amount of insurance best protects your home and financial future.
Tips and suggestions
- Review competitive online quotes from licensed providers in the state before deciding on an insurance provider.
- Research possible discounts such as theft prevention devices or combining auto and home insurance with the same company.
- Make a complete inventory of your home's valuables. You might want to include photos or video of expensive items. Make a copy of this list and keep it in safe location, such as a safety deposit box at your bank.
- Review your policy. Each year you should review your insurance policy and make adjustments as needed. This is especially true if you have accumulated personal items, or made amendments to your home's structure.