Home Insurance FAQs
Q: What is homeowners insurance?
A: Homeowners insurance is a form of personal lines insurance. The typical homeowners policy has two main sections:
- covers the property of the insured and,
- provides personal liability coverage to the insured.
Q: What do I need to know when purchasing homeowners insurance?
A: The amount and type of insurance that you need.
Determine the amount of personal property insurance and personal liability coverage that you need.
Select any additional endorsements you want to add to your policy. For example, do you want the personal property replacement cost endorsement?
Q: What is “actual cash value”?
A: When “actual cash value” is used in a policy, a policy owner is entitled to the depreciated value of the damaged property.
Q: What is replacement cost”?
A: When “replacement cost” coverage is used in a policy, a policy owner is reimbursed an amount necessary to replace the article with one of similar type and quality at current prices.
Q: Is my iPhone, iPad, or Laptop covered by my Home Insurance?
A: A standard home insurance policy will provide coverage for these items if the type of damage or loss to the item is covered by the home insurance policy. The amount that is paid for the loss, will be minus your deductible. Typically a Home Insurance deductible is $500 or $1,000 per loss. An option to schedule the items such as iPhones, iPads or Laptops, is also available. There is a charge for this coverage. The scheduled item would then be covered for other causes of loss, such as mysterious disappearance and the deductible would not be charged. If you would like to discuss these options, please call Bonnie or Kelley Jo at 423-587-2204 at Strate Insurance Group, Morristown, TN.
Q: Where and when is my personal property covered?
A: Coverage C of a homeowners policy provides named perils coverage. This applies to all your personal property (except property that is specifically excluded).
Q: Should I purchase earthquake coverage?
A: Direct damages due to earthquakes are not covered under the standard homeowners insurance policy. If you live in an area that is prone to earthquakes, you may want to consider adding an earthquake endorsement to your homeowners insurance policy. This endorsement will cover damages due to earthquakes, landslides, volcanic eruptions and other earth movements.
Q: Should I purchase flood coverage?
A: If your property lies in a flood plain as determined by US Government Flood Maps. Ask your independent agent about a flood quote.
