You may be wondering how your homeowners insurance can protect your home from Virginia's more severe weather. While every home insurance policy is different, a standard homeowners policy offers valuable coverage and protects you and your family from unpredictable, severe weather and a whole lot more.
While this article will provide those specific details, it will never replace the invaluable knowledge of an insurance advisor. It's important to regularly review your home insurance policy to meet your changing life needs. An insurance professional can help you decide your policy's limits (the total amount your insurance company pays on a claim) and deductibles (the portion you pay on a claim). Common deductible amounts are $500, $1,000, and $2,000, and some policies may have percentage-based deductibles, often for specific perils like wind, hail damage, and hurricanes.
Standard homeowners insurance policies typically include several types of coverage, often labeled Coverages A, B, and so on. Here are descriptions of the main types of coverage:
This coverage protects the structure of your home and pays for the costs to rebuild or repair it after a covered peril. The dwelling coverage limit is typically equal to your home's estimated value. This damage might be caused by theft, vandalism, or weather events like lightning, wind, or hail. Additional damage could also occur from incidents such as a tree falling.
The policy can replace or repair items like appliances, furniture, clothing, and other personal belongings if they are damaged or stolen due to a covered event. You can also choose between replacement cost coverage, which replaces your items for new ones, or actual cash value coverage, which offers money during a claim for the depreciated value of your items.
It can also extend to outbuildings on your property, such as a garage, barn, or shed, as well as outdoor features like grills, fireplaces, swing sets, walls, or fences. While a swimming pool or other recreational equipment might be included, these higher-risk items could necessitate additional liability coverage or might be excluded from your policy.
Standard home insurance includes liability coverage, which can cover medical expenses and legal fees if someone who doesn't live in your home gets injured on your property. It can even cover funeral expenses of someone who is injured on your property.
Standard home insurance may also cover living expenses if you need temporary accommodation while your home is being repaired, such as pay for hotel stays, restaurant meals or other expenses. Hotel fees and other living expenses can quickly add up to thousands of dollars.
A peril refers to a specific event or circumstance that has the potential to cause damage or loss to your property or personal belongings. In insurance terms, a peril is the underlying cause of a loss that may be covered by your policy. Standard homeowners insurance policies outline which perils are covered—such as fire, theft, or wind—meaning if these events result in damage, your insurance is designed to provide benefits to help cover the repair or replacement costs.
What is Covered by Homeowners Insurance?
Common perils, or events, that home insurance can cover are:
Standard home insurance generally provides coverage for the cost required to repair your home, subtracting the depreciation in value due to age or wear. This is referred to as actual cash value (ACV). This might mean you would have to cover the additional expense to restore your home to its original condition, which is more expensive today.
Replacement cost coverage can bridge this gap. This type of coverage can pay the current market price for building materials to repair your home. It can also replace your possessions at today's cost for similar items. It's crucial to discuss replacement cost options with your insurance agent when selecting your policy. Learn more about the difference between ACV coverage and replacement coverage.
Once you understand the difference between actual cash value home insurance and replacement home insurance, it's important to determine how much home insurance you need and then to annually review your coverage with your local insurance advisor. Consider any changes to your home, needed repairs and maintenance, especially to big ticket items, like your roof.
Keep reading our blog to find out what's not covered by standard home insurance. You may need to add specific endorsements or added coverage for risks unique to your property, such as flood insurance. When you review your policy with your local independent agent use your declaration page as a summary of your policy, a review items such as the named insured, the property address, policy period, coverage limits, deductibles, and premium. It's important to review the entire policy to understand the details of your coverage, exclusions, and limitations.
THE NORTHERN NECK INSURANCE INTEGRITY PROMISE — We pledge to provide straight talk and good counsel from our NNINS Virginia insurance experts through our blog. While we hope you find this to be a helpful source of information, it does not replace the guidance of a licensed insurance professional, nor does it modify the terms of your Northern Neck Insurance policy in any way. All insurance products are governed by the terms in the applicable insurance policy.