Homeowners Insurance

Homeowners insurance is designed to cover damage to your property – your home and the things you keep in it.  It also protects you against liability for accidents that injure other people or damage their property.

Below are a few terms associated with homeowners insurance and coverage options:

  • Replacement Cost and Actual Cash Value:  Replacement cost is the cost to rebuild or replace the house with comparable materials.  Actual cash value is an estimate of what the property, or goods, are worth, factoring in depreciation, at the time of loss.
  • Perils:  A peril is an event, such as a fire or theft, that causes damage to your property.  A peril which is covered under your policy will be stated as will those that are specifically excluded, such as flood, earthquake, water and sewer backup.  For perils which are specifically excluded from your homeowners policy a separate policy can be purchased, ie., flood insurance, or an endorsement added to your existing policy, ie., water and sewer backup.