What is Homeowners Insurance?

Homeowners form HO3 is intended to provide you with financial protection against damage to your home. A standard home insurance policy covers the property and liability.

Are there different types of Homeowner policies?

Form HO3 written on owner-occupied single-family homes

This policy can provide property coverage for the house, other structures, contents, and loss of use of your house for various causes of loss as defined in the policy. Provides financial protection to the named insured and family members in the event of a lawsuits for bodily injury or property damage that the named insured, family members or pet cause to other people whether on your property or elsewhere.

Form HO6 Condominium form

Normally the Condo Association covers the building and the HO6 covers property coverage your unit from bare walls in for your contents, and loss of use of your unit for various causes of loss as defined in the policy. Provides financial protection to the named insured and family members in the event of a lawsuits for bodily injury or property damage that the named insured, family members or pet cause to other people whether on your property or elsewhere.

Form HO4 Renter’s form

Renters Insurance The building owner’s policy will not cover you or your contents. That’s why it is important to have a renter’s policy. This policy can provide property coverage for the your contents and loss of use for various causes of loss as defined in the policy. Provides financial protection to the named insured and family members in the event of a lawsuits for bodily injury or property damage that the named insured, family members or pet cause to other people whether on your property or elsewhere.

What kind of insurance do I need for a non-owner-occupied house?

There are also other types of policies for different situation when a home is not owner occupied. Dwelling Fire policies and can be written for Tenant occupied dwellings. Dwelling policies are also referred to as Dwelling Fore policies and come in three versions. The most comprehensive form is Special form, followed by Broad form and lastly Basic form which has the least coverage.

What policy do I need if my house is Vacant?

Vacant Dwelling policies are written on Vacant homes. Most companies do not write this type of policy. Most Vacant dwelling policies have high deductibles, are written on Basic form and have Actual Cash Value claim settlements.

What is the most common type of homeowners insurance?

The most common type is Form HO3 which is written on Owner-Occupied Single-Family homes. The HO3 provides the following coverage:

Coverage A Dwelling: The Dwelling limit on the policy should be sufficient to rebuild your home. We recommend having Guaranteed Replacement cost coverage included on the policy. Some policies will state Guaranteed Replacement cost. Some policies offer additional Replacement Cost Coverage A (Dwelling) limits on for your home above and beyond the limits on the declarations page such as an additional amount of 25% or 50%. Other polices do not offer coverage above what is stated on the policy.
Coverage B Other Structures: The limit on the policy should be sufficient to rebuild your Other Structures such as detached garages or sheds. Coverage B usually defaults to 10% of Coverage A. Dwelling limit however additional limits may be available.
Coverage C Contents: Contents or Personal Belongings coverage is for items in your home such as furniture, clothes, etc. Most policies include a set limit based on the coverage on the dwelling such as 50%, 70% or 80%. We recommend you do an inventory to make sure you have sufficient coverage to purchase all your contents in today’s dollars and with a replacement cost valuation for your contents. Open peril coverage covers is broader than named peril coverage. This may be available and is often referred to as form HO5.
Coverage D Additional Living Expenses: This covers your additional expenses incurred due to not being able to live in your home due to a covered loss such as a fire. Homeowners policies covers your additional living expenses incurred due to the inability to live in the structure due to a covered loss. Usually, the insureds move to temporary housing nearby (the home) while repairs are being made to the home.
*Coverage E Liability: Provide Liability Protection to the named insured and family members in the event of a lawsuits for bodily injury or property damage that the named insured, family members or pet cause to other people whether on your property or elsewhere. Includes the cost to defend you and court judgements.
*Coverage F Medical payments: helps cover medical bills if someone who doesn’t live with you is injured on your property. It also pays if you, a family member, or if a pet injures someone away from your home.

*It is recommended that you obtain quotes for higher limits. People are often surprised how little it cost to increase these limits.

What endorsement should I have on my Homeowners policy?

There are numerous endorsements which can be added to a basic homeowner policy. Some of the most common homeowner’s endorsements:

Replacement Cost on Dwelling
Extended Replacement Cost on Dwelling
Replacement Cost on Contents
Water Back up of sewer or drains
Scheduled Jewelry or Sports Equipment
Underground Service Line / Underground Utility line
Identity Theft Protection.

Many more Homeowners policy endorsements are available, so we recommend you speak with an agent at William J. Goodman Insurance Ltd. Insurance agency to get a customized quote to provide the coverage you need.

Why do I have two different deductibles on my Homeowners policy?

Homeowner Deductibles have changed in recent times. In the past most homeowner’s policy had one deductible for all types of losses. Recently most policies have changed to having a separate wind / hail deductible plus a deductible for all other perils referred to as “All other Peril” deductible.

Most Deductibles are fixed dollar amounts. Some are based on a percentage of the Policies Coverage A (dwelling limit). For example, if you have a house with $380,000 of coverage A dwelling limit and a 1% deductible; then you would have a $3800 deductible.

What is A Roof Settlement Schedule?

Lately many companies have changed the way the settle (pay out) roof claims to Roof settlement schedules. These schedules pay a certain percentage of the cost to replace based on a preset schedule which starts at 100% on a brand-new roof and decreases annually over a set number of years, usually 30 years.

What are sub-limits on my homeowner’s policy?

Most policies have built in sub-limits on items such as jewelry, fine art, collectibles, antiques, and sports equipment, etc. If these sub limits are not enough you can purchase a separate Inland Marine Floater or Personal Article Floater to get the correct amount of coverage. Some of the most common scheduled items: Jewelry, Fine Arts, Sports equipment. Typically, an appraisal or proof of purchase and value of item are required. So, it’s a good idea to save your receipts.

Is homeowner insurance required if I have a mortgage?

Purchasing home insurance is a requirement to obtain a home mortgage.

Am I required to have Flood Insurance?

IF you live in a flood plain your mortgage company will require Flood insurance. Purchasing a separate flood insurance policy can help cover the costs should your home suffer damage in a flood. Flood policies can cover dwelling and contents. Flood zones vary depending on your location.

Is flood coverage by my Homeowners policy?

No. Flood Insurance or loss from a Flood is NOT part of a standard home insurance policy. A separate flood insurance policy is required to cover for floods.

We recommend consulting with the professional agents at William J. Goodman Insurance, Ltd at 708-799-2655 to learn more. We provide many different types of homeowners insurance coverage in both Illinois and Indiana. As an independent agency we are not limited to just one company. We represent many different companies and will shop these companies for the best coverage and price. We serve clients in areas such as: Chicago, Chicago Heights, County Club Hills, Crete, Crown Point, Dyer, Glenwood, Hazel Crest, Homewood, Flossmoor, Frankfort , Joliet, Lansing, Manteno, Mokena, Oak Forest, Oak Lawn, Orland Park, Orland Hills, South Holland, Steger, St. John, Tinley Park and more. Contact William J. Goodman Insurance, Ltd today at (708)799-2655 to speak with a homeowners insurance professional.