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4 Things You Should Know about Homeowners Insurance
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1. What is covered?
Maybe you just bought your first home, and along with one of the biggest purchases you have ever made, you’ve also purchased homeowners insurance. The problem: you’re not really sure what it covers. Here are some of the basics:
Most standard homeowners insurance policies include the following types of coverage:
: covers the physical structure
Personal Property coverage
: covers the personal belongings inside the home
Adjacent Structures coverage
: covers additional structures on the property, such as detached garages and sheds
Personal liability coverage
: this covers costs related to any bodily injury sustained by someone who does not live in your home
Additional expenses coverage
: this includes extra living expenses that might come up due to a natural disaster, and you’re displaced from your home by the requirement of an evacuation.
Usually, homeowners insurance is required by the lender to obtain a mortgage. Plans and protection vary by state.
2. Does homeowners insurance cover fires?
Yes. When homeowners insurance coverage first came popularized in the 1800s, it was referred to as Fire Insurance. Homeowners insurance also covers financial loss caused by weather (like lightening, hail, and windstorms, including tornadoes) and catastrophic events (like explosions).
3. What is the difference between actual cash value dwelling coverage and replacement cost dwelling coverage?
Actual cash value dwelling coverage
is what it would cost to replace your home and belongings after deducting depreciation (how much the items are currently worth, not what you paid for them).
Replacement cost value dwelling coverage
is what it would cost to replace your home and belongings without the deduction for depreciation.
4. Where and when is my personal property covered?
Personal property (except property that is specifically excluded) is covered anywhere in the world. For example, suppose that while traveling, you purchase a dresser and you want to ship it home. Your homeowners insurance policy would provide coverage for the “named perils” while the dresser is in transit – even though the dresser has never been in your home before.
If you’re interested in a homeowners insurance quote or have any questions, please feel free to give us a call at 866-727-4712 or contact us
Insurance offered by 21st Mortgage Corporation dba 21st Insurance Agency where applicable. Principal place of business: 620 Market Street Knoxville, TN 37902. Statements are for informational purposes only and do not create a contract. Subject to policy provisions, exclusions, and limitations. Policy language prevails over any information herein. Coverages and features not available in all states. Eligibility subject to meeting underwriting criteria. Discounts and actual savings may vary. CA license number 0D51778. Please visit at
for licensing information. NPN 5317371. 9/16/2020.
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