Home Owners Insurance Angela Beasley 614 642 0941

Home Owners Insurance Angela Beasley 614 -642 -0941 Ohio Insurance Alliance Group

What is the purpose of Insurance? To protect your family, home, business, and assets To protect you against large losses To make you and your family “whole again” 2

Homeowners Insurance meant to protect your home and contents against “Perils” A Peril is a specific risk or cause of loss covered by an insurance policy, such as a fire, windstorm, flood, or theft. A namedperil policy covers the policyholder only for the risks named in the policy in contrast to an all-risk policy, which covers all causes of loss except those specifically excluded. 3

What are the types of coverage a Homeowner’s insurance policy offers? Property • Includes the dwelling, attached structures, may include personal property - We will define this later Liability • Personal Liability insurance is about financial protection - for you and your family. The personal liability coverage within your homeowner’s policy provides coverage for bodily injury and property damage sustained by others for which you or covered residents of your household are legally responsible. 4

Homeowners’ policy types There are 8 HO Forms HO 1 - BASIC HO 2 – BROAD HO 3 – SPECIAL HO 4 – TENANT HO 5 – COMPREHENSIVE FORM HO 6 - CONDOMINIUM HO 7 – MOBILE HOME HO 8 – OLDER HOME (HISTORIC) 5

BASIC Form HO 1 Basic - “Named Peril” Covers Perils • • • Fire or smoke Explosions Lightning Hail and windstorms Theft Vandalism Damage from vehicles Damage from aircraft Riots and civil commotion Volcanic eruption 6

BROAD Form HO 2 Broad - “Named Peril” Covers Everything in Basic plus • Falling objects • The weight of ice, snow, or sleet • Freezing of household systems such as heater or air conditioning unit • Sudden and accidental damage to pipes or other household systems • An accidental overflow of water or steam • Sudden and accidental damage from an electrical current (artificially generated) 7

Most Common HO Form SPECIAL Form HO 3 Special - Covers Everything in Broad HO 2 form and more • It covers all of the perils listed in the HO-2 policy and more. • It is a open peril policy, so it protects you against any and all perils except any specifically excluded in your policy. • The special form covers your property, personal belongings, and liability protection. • Common perils excluded are earthquakes and floods 8

HO-3 Homeowners (all risks except those excluded) • Designed for someone that owns the house they live in. That’s the starting point • The house that's normally covered would be a single-family dwelling or multiunit dwelling, like a duplex, that has up to four units. Some carriers would restrict that further, but generally it's four units. • The owner occupant of the dwelling may also have boarders. They can own a house where they rent out a room to somebody else and still be eligible for this policy • Considering that the biggest thing is the owner, the occupant, it's an owneroccupied property. 9

HO-3 Homeowners Policy is not for Since this policy is designed to have both property and liability coverages these policies are not meant for: • Tenants • Somebody renting out a house or home • People that own the house, but they are renting it out • Condominium unit owners • Business entities 10

Typically Not Covered? Animals Motor Vehicles (unless used to maintain the property or assist handicapped individuals Aircraft/Hovercraft Property of roomers Property in an apt rented or held for rental by others Business Data, credit cards (unless specified) 11

Homeowners Insurance Coverage Includes: Dwelling Covers the house and attached structures for accidental direct physical loss, such as built in appliances or wall to wall carpet, etc. Other Structures Covers other buildings or structures on the property that are separated by clear space from the house. Examples are detached garage or a shed (lawn equipment or furniture is stored. Automatic % of dwelling amount coverage, typically 10% Contents Covers your personal property, such as furniture, clothes, etc. Items not attached to your home. Covers losses due to specific causes: fire, smoke, wind, theft and others* - typically 50% of dwelling Additional Living Expenses Loss of use. These are costs you may incur if you have to temporarily relocate because your home is unlivable as a result of the covered damage. Personal Liability Covers bodily injury and property damage to others for which you are held liable. 12

Coverage A - Dwelling • Typically based on “replacement costs” • for the house and for all attached structures, if it's not covered anywhere else. • There's also coverage for materials and supplies located on or next to the premises • Direct physical loss or damage to property construction materials and supplies that the insured may be using for the dwelling. If they are doing an addition, if they are working on remodeling some space and they've got some lumber sitting in the yard, that could be covered if it's not covered somewhere else 13

Determining the Value of your Home Replacement Costs The cost to replace the property on the same premises with other property of comparable material and quality used for the same purpose. Typically used to determine coverage amount and almost always set at 100% ACV The amount equal to the replacement cost minus depreciation of a damaged or stolen property at the time of the loss - ACV = replacement costs – depreciation *Sometimes used with very old homes 14

Coverage B – other Structures An other structure is any structure set apart from the dwelling by clear space, including being connected to the dwelling by only a fence, utility line, or similar connection. • Detached (not attached) Garage • Shed in the backyard • Pool separated from house • Fence • 10% of coverage A • Direct physical loss or damage to property Some things that aren't covered, land, any structures rented to anyone that isn't a resident of the dwelling for the exception of free uses of private garage. If there's a garage on the premises that the insured rents out to somebody simply to store a car, that's fine. If it's being rented out for any other purpose. 15

Coverage C – Personal Property “Contents” It's the personal property owned or used by an insured anywhere in the world. . • Bikes • Purses • Clothing • Televisions • Anything that you can pickup and take with you or that will fall out if you pick up the house and turn it upside down – things that aren’t permanently attached. 16

Coverage D – Loss of Use provides money to allow insured to live as though nothing happened until their home looks like nothing happened • Additional living expenses, may include: • • Hotel Room Pet Boarding Restaurants Laundry • Loss of Rents • If insured rents out a room • Holds a room for rent * Coverage only for normal expenses that incurred to operate the home - Normal rent, mortgage, or utilities are not covered here. 17

Who does your Homeowner’s Policy Cover? Coverage E – Personal Liability insurance is about financial protection - for you and your family. The personal liability coverage within your homeowner’s policy provides coverage for bodily injury and property damage sustained by others for which you or covered residents of your household are legally responsible YOU (property side): Name Insured Resident Spouse YOU (liability side): • • • You and resident relatives under 21 Full time student living away under 24 (must be related) Anyone responsible for an animal or watercraft you own listed on this policy Anyone using a vehicle that this insurance applies to, with your permission, on the premises. 18

Additional Coverages • Debris Removal • Water Back – water backing up from sewers and drains in the house • Ash & Dust Removal • Tree Removal • (fire, lightning, explosion, riot, aircraft, vehicles vandalism and theft) • Reasonable Temporary Repairs to Damaged property • Tree • Shrubs & Plants • (fire, lightning, explosion, riot, aircraft, vehicles vandalism and theft) • Loss Assessment • Ordinance or Law • (code enforcement upgrades) 19

“ Flood coverage is excluded from all homeowner’s policies – it happens when a body of water comes into your home from the outside – it is a federally mandated program. The rates are the same wherever you go 20

THANK YOU Angela Beasley 614 -642 -0941 angela@myallianceagency. com Stateofohioinsurance. com