There are dozens of insurance companies that offer homeowners insurance in New Hampshire. Each carrier has its own proprietary endorsements, or add-ons to their homeowners product and slightly different language in their policy contracts. Regardless of which company you choose to do business with, however, the following six coverages are typically included on all standard homeowners insurance policies.
Dwelling
The foundation of every homeowners insurance policy is the dwelling coverage. This coverage is in place to repair or replace the main structure on your property subject to the dwelling coverage limit. The dwelling limit is based on a replacement cost estimate. The replacement cost estimate is calculated using data for your specific home and takes numerous factors into account, such as the year built, square footage, number of baths, presence of attached structures such as porches, garages, and decks, the type of mechanical systems used in the home, and the quality of finishes in the home among other factors. Be sure to keep your insurance advisor updated on any major changes you make to your home, as your dwelling coverage limit may need to be adjusted in order to make sure you are adequately insured to replacement value. Dwelling claims are subject to the policy deductible.
Other Structures
Other structures coverage provides protection for appurtenant buildings on the same premises as your main dwelling. Some examples include a detached garage, shed, or pole barn. A standard homeowners policy provides 10% of the dwelling coverage as an other structures limit. For example, if your dwelling is insured for $300,000, then your other structures limit would be $30,000. This coverage is automatically included in your policy and cannot be removed, but it can be increased if necessary for an additional premium. Be sure to discuss your other structures limit with your insurance advisor if you believe the automatically included 10% limit is insufficient to cover your detached structures. Other structures claims are subject to the policy deductible.
Personal Property
Personal property coverage protects your belongings. Anything that you can pick up and move out of the home, including appliances, furniture, electronics, clothing, etc. is considered personal property. Each carrier automatically includes a preset percentage of the dwelling limit to cover personal property, ranging from as little as 50% to as high as 80%. For example, if your dwelling is insured for $300,000, then your personal property limit would be between $150,000-$240,000. Like other structures coverage, this personal property coverage is automatically included in your policy and cannot be reduced or removed, but it can be increased if necessary for an additional premium. Be sure to discuss your personal property limit with your insurance advisor if you believe the automatically included limit is insufficient to cover your detached structures. Also keep in mind that insurance companies have separate sub-limits in place for certain items such as jewelry, watches, fine arts, furs, collectibles, and firearms. These specialty items must be scheduled specifically on your policy. Make sure to discuss adding additional coverage for these items with your advisor. Personal property claims are subject to the policy deductible.
Loss of Use
Loss of Use coverage provides for a temporary alternate residence while your uninhabitable residence is being repaired or rebuilt. This is an often overlooked but extremely important coverage as renting a temporary home or hotel while also continuing to pay your primary mortgage payment can quickly cause financial stress. Some carriers provide a limit based on a preset percentage of the dwelling limit similar to other structures and personal property, while others provide loss of use coverage on an actual loss sustained subject to time limitations which can range from one to two years. In order for loss of use coverage to apply, the home must have been damaged by a covered loss, such as a fire or windstorm.
Personal Liability
Personal liability coverage pays for claims of bodily injury or property damage sustained by others for which you are responsible. Oftentimes these claims occur on the insured premises, such as a slip and fall in an icy driveway, but personal liability coverage provides protection for the insured off-premises as well. The classic example is striking a fellow golfer with a ball while playing a round at the local golf course. The golfer’s personal liability limit would pay for injuries sustained by the injured party, even though the injury did not occur on the insured’s residence. Personal liability coverage is not subject to the policy deductible.
Medical Payments
Medical payments coverage pays for minor injuries to guests on your property regardless of who is at fault. This coverage typically has a smaller limit of $1,000 or $5,000 and can be used to cover smaller injuries while hoping to avoid a larger personal liability claim or lawsuit. Medical payments coverage is not subject to the policy deductible.
The Insurance Outlet’s trusted advisors would be happy to perform a comprehensive risk analysis of your homeowners insurance needs and design a personalized solution for you! Please call or text us at 603-527-8050, or stop by our local office at 174 Court Street in Laconia, NH. For your convenience, we also offer online quotes 24-7 on our website.
