Homeowners Insurance

What is Homeowners Insurance? 

Homeowners insurance is a type of property insurance where the insured's dwelling and its contents are protected against risks or damages. It also protects the owner from liability for accidents that occur on their property. A standard homeowners policy will cover damage caused by fire, natural disasters, theft, vandalism, material defects in construction and plumbing/wiring problems. The coverage may also include mortgage lender liability if the homeowner did not personally insure his or her mortgage for the full amount of the mortgage. Coverage is optional for mortgage lenders.

What is a Homeowners Policy? 

A standard homeowners policy defines covered events and loss scenarios. The insurance company will typically provide an exact payout to a specific loss category such as burglary, fire or other disaster or damage event. In addition to this, homeowners policies will define which expenses are covered for each type of loss scenario and how much money is paid out to repair the damaged property. The definition of "covered expenses" depends on the insurance company's underwriting guidelines. Most policies cover some expenses such as home repair, legal fees and lost wages.

What does a Homeowners Policy Cover?

In general, a standard homeowners policy will cover the following:

Homeowners Insurance is one of three types of property insurance and is often sold along with renters and commercial (business) insurance. Other property insurance policies include auto, contents (home) and commercial liability insurance. Contact a local agent to learn more about homeowners insurance in your area.

Homeowners Insurance can be bundled with other policies such as auto, boat or motorcycle insurance to reduce rates. Bundling can also help companies reduce claims costs because it helps them elevate risk profiles and establish profitability goals for different coverage categories. Insurance companies that offer bundled policies usually offer discounts of 10% - 15%.

Homeowners insurance policies are written by private insurers, which means that the premiums and coverage terms are set by the company. Government insurance, such as FHA or VA loans, have different minimum standards for coverage. In general, typical homeowners insurance policies in the United States include:

Personal property coverage 

Liability coverage 

Additional living expenses 

Coverage for additional structures and/or land improvements (some may be limited to a specified dollar amount) 

Homeowners Insurance has many options and add-ons to customize coverage based on personal needs.

The following are some examples of how the cost of coverage can vary:

Here are some additional tips for getting the best prices on a homeowners insurance policy.

Coverage limits are set by the insurance company and may vary by state. Some companies have special policies that will cover more than what is covered under a standard homeowner's policy.

Whether or not your homeowners insurance covers for flood damage depends on where you live. Most policies will have limitations if flooding is due to a named storm like hurricane or from overflow caused by disrupting river currents (such as from dam failures or large snow melt).

Some insurance companies may consider flood damage a "natural disaster" and not reimburse you for any additional living expenses (but not for your property). This is often the case if your home happens to be located in an area that is known to flood.

Flood Insurance agents can help find policies that will cover damages from flooding, even if it is secondary damage. It is important to note that it can take several days or weeks before flood insurance claims are processed by the Federal Emergency Management Agency (FEMA) and private insurers may require some policy holders to wait 90 days from the date of loss before approving a claim.

In the United States, the National Flood Insurance Program (NFIP) offers a form of government-backed coverage for homes and land in areas that have been designated by a state as subject to a 100-year flood or one that has a 1% chance of occurring in the next year. The average deductible is $800.

Since the NFIP was formed in 1968, there have been reports of some fraudulent claims being submitted through it by companies who use it as an itemized insurance policy. Additionally, some states do not participate in the program which means that if you live in one of those states, you must purchase private insurance to cover your property.

In the United States, flooding is covered by the National Flood Insurance Program. This program is administrated by the Federal Emergency Management Agency (FEMA) and private insurance companies.

There is a $500 deductible which increases to $1,000 for 100-year flood plains. If your city is outside of this zone, you will need to purchase private insurance if you live in a flood zone. The final break-even point on a NFIP policy is determined by FEMA based on where you live and how much property damage it can expect from natural disasters and catastrophic weather events.

The National Flood Insurance Program was created in 1968 due to increasing flood damages to housing throughout the US. The goal of the program is to provide flood insurance to properties that are located in areas that have flood risks. The program is funded by a $1.3 billion assessment on policies and policies renewed every five years.

Some changes were made to the flood insurance program in 2012. These changes include: lower coverage limits, changes in how flood insurance is managed, and a new risk management model which requires stricter management of claims. All policyholders must reapply for upgraded versions of their policies after 2017. FEMA is phasing out the certified floodplain maps which were used to calculate premiums for owners living in these areas and will instead rely on map analyses performed by private consulting firms with recent scientific data on the area's risks of flooding. Also, claims that are denied because of flood plain maps will be appealed to their local FEMA director and the appeal may be upheld.

There is also a process called "flood mapping" that is used to determine if properties are in a 100-year flood zone. Maps are created by using historical flood data that FEMA collects at multiple sources. These data sources include:

The 100-year flood event in Louisiana occurred on March 27, 2016 when the Vermilion River flooded causing significant damage. The death toll was at least nine, and several homes were claimed by the water elsewhere in the state.

In the United States, there are several major policies that both the federal government and state governments advocate for to be made compulsory:

The Affordable Care Act (ACO) was a major revision to health insurance law in the United States. The federal government supplied a large pool of funds to encourage states to set up exchanges (also called health insurance marketplaces) where citizens could purchase health insurance policies; they also encouraged states to expand Medicaid eligibility after 2014. Subsidies were provided for those who had income less than 9 taxable income, which was $11,880 for an individual or $24,600 for a family ($29,425 in 2016).

Conclusion: the Affordable Care Act was a comprehensive attempt to create national health care, but it has been met with major opposition by Republicans. Since the law passed in 2010, 24 states have not fully implemented the program. The lack of implementation has left many Americans without insurance and struggling to pay for health services.

The Patient Protection and Affordable Care Act (PPACA) is a federal law that was passed in 2010 to reform health insurance. One of the goals of the PPACA is to provide affordable health care to all Americans by setting up state exchanges where citizens can purchase their own policies with subsidies from the government.

Conclusion: The law has been met with much criticism since it was first proposed, but it will be fully implemented in 2014.