When it comes to home insurance Tucson may seem like a relatively safe place. There are few natural elements that run up serious damage on a house and natural disasters are certainly rare. It’s a seemingly safe environment for a house, so why should a Tucsonan bother insuring their home?
There are actually many instances beside natural elements and disasters where home insurance would be helpful. Good coverage will insure you against vandalism and theft, and, though the sentimental value of personal possessions can’t be reimbursed, quality insurance can lend monetary aid in the event of theft or accidents. Additionally, it isn’t unheard of that a worker or just a visitor would get injured on one’s property and the property owner is liable. While natural disasters are uncommon, human-caused incidents occur quite often, and with quality home insurance Tucsonans can have peace of mind.
Your house is most often your largest and most valuable asset. Home ownership costs you time and money for both the purchase and the upkeep. When you’ve spent so much and so long making your house your own, wouldn’t you want a guarantee against anything happening to it? If you would insure your car, why wouldn’t you insure your home?
What is Insured
Coverage A – Dwelling:
Provides protection for the dwelling on an all risks basis up to the policy limits. The policy limit is set by the policyowner at the time the insurance is purchased. You can choose to insure your home and belongings for either replacement cost or actual cash value. The home should be insured for replacement cost. Replacement cost is the amount it would take to replace or rebuild your home or repair damages with materials of similar kind and quality, without deducting for depreciation. Depreciation is the decrease in home or property value from the time it was first built or purchased because of age or wear. Actual cash value is the amount it would take to repair or replace damage to your home after depreciation. Most insurers require homeowners to insure their homes for at least 80 percent of the replacement cost. If you insure for less than 80 percent of the replacement cost of your home, any loss payment from your insurance company will be subject to a coinsurance penalty. You may wish to insure at 100 percent of replacement cost so you will have sufficient coverage in the event of total loss.
Coverage B – Other Structures:
Provides protection for unattached structures such as tool sheds, detached garages, houses and their contents. Coverage B is usually equal to 10 percent of the policy limit on Coverage A.
Coverage C – Personal Property:
Provides protection for personal belongings. Items such as clothing, furniture and standard electronics are covered. Some policies may include credit card theft and away from home theft. The policy limit on Coverage C is equal to 50 percent of the policy limit on Coverage A. Most standard home insurance policies cover the contents of your home on an actual cash value basis. Many insurers offer an option to insure your belongings at replacement cost. The premium will be higher for this coverage but may be worthwhile. Some forms of personal property, such as, silverware, computers, guns, money, expensive antiques and jewelry, have limited coverage under the homeowner’s policy and may be added to the policy as an endorsement.
Coverage D – Additional Living Expenses:
If your home is damaged to the extent of being uninhabitable, this coverage will pay for the living expenses away from the home while repairs are being made. These expenses could include limited motel, restaurant and warehouse storage. The policy limit to Coverage D is equal to 20 percent of the policy limit on Coverage A.
Coverage E – Personal Liability:
This coverage protects you against a claim or lawsuit resulting from bodily injury or property damage to others caused by your negligence. For example, your dog bites someone, your child breaks a window or a friend or stranger hits his or her head on something. This coverage applies to you and all family members who live with you. The amount of coverage is determined by the policyowner at the time the policy is issued.
Coverage F – Medical Payments to Others:
Regardless of who is at fault, this coverage pays for the medical expenses for persons accidentally injured on your property.
Types of Policies
There are two types of policies: all risks and named perils. A named perils policy covers losses that are due to only those perils listed in the policy. The perils typically covered include fire, windstorm, hail, and other direct physical losses. An all risks policy covers losses that are due to any peril except those specifically excluded in the policy. It is important to note the all risks policy provides broader protection than do named perils policies.
The five types of homeowner packages offered to owners of single family owner occupied homes are HO-1, HO-2, HO-3, HO-3 with HO15 and HO-8.
HO-1 Basic Homeowner
Insures your property against the following 11 basic named perils: fire/lightning, loss of property removed from premises endangered by fire or other perils, windstorm/hail, explosions, riot/civil unrest, aircraft, vehicles, smoke, vandalism/malicious mischief, theft, and breakage of glass constituting a part of the building.
HO-2 Broad Basic Homeowner
Insures your property against the 11 basic named perils in HO-1 plus 7 additional named perils: falling objects, collapse of roof due to weight of ice or snow or sleet, collapse of building(s) or any part thereof, bursting of steam/hot water system , leaking of plumbing or heating system, freezing of pipes, sudden and accidental damage from artificially generated currents to electrical appliances or devices or fixtures or wiring.
HO-3 Special Extended Homeowner
Provides for comprehensive coverage (all risks) on your home and the 18 (HO-2) broad named perils coverage on your contents. This is the most popular of all homeowner policies.
HO-3 with HO-15 Comprehensive Homeowner (all risks)
Covers your home and personal property for everything that is not specifically excluded. This policy usually provides the broadest all risks coverage available, but is not offered by all insurance companies.
HO-8 Modified Homeowner
Covers homes that have suffered extensive depreciation. Historical or architectural features may make the home more expensive than its market cost. This coverage is more restrictive much like HO-1 but is geared towards older homes.