What's Covered, What's Not, and Your Legal Duties as a Homeowner's Insurance Policyholder

Homeowner's insurance can feel like a safety net for many property owners, offering financial protection against unexpected damage, theft, or liability. Yet, understanding the nuances of a policy, what it covers, and the obligations it mandates is essential for making informed decisions. Today, we’ll take a look at the standard provisions of a homeowner's insurance policy and provide insights into typical claims and common areas of contention.

Standard Coverage Provisions

• Dwelling Protection: This covers the cost to repair or rebuild your home if damaged by insured events such as fire, lightning, or windstorms.

  • Example: A tree falls on your house during a storm, causing structural damage.

• Personal Property Protection: This covers the cost to replace personal belongings, like furniture and clothing, lost due to insured events.

  • Example: A burglary results in stolen electronics.

• Liability Protection: Provides coverage against legal expenses and medical bills if someone gets hurt on your property.

  • Example: A guest slips on your icy driveway and breaks a bone.

• Additional Living Expenses (ALE): If your home is uninhabitable after a covered event, ALE will cover the additional costs you incur, such as hotel bills.

  • Example: A kitchen fire renders your home uninhabitable, necessitating a hotel stay.

Common Coverage Disputes

Damage from floods and earthquakes is a common source of coverage disputes. Standard homeowner's policies typically do not cover damage resulting from floods or earthquakes. Separate policies must be purchased for these risks.

Maintenance damage is another frequently contested area. Insurers often reject claims resulting from poor home maintenance. For example, mold or pest damage resulting from neglect is usually not covered.

Certain precise causes of damage can also become sources of disagreement. While your policy might cover wind damage, if a fallen tree (due to wind) leads to a burst pipe, the latter might not be covered. 

Policyholder's Obligations:

• Premium Payments: Timely payment of insurance premiums is a must. Non-payment can lead to policy cancellation.

• Informing of Changes: If you make significant home improvements, informing your insurance company might be obligatory. Such changes could impact your coverage needs and premiums.

• Preventive Measures: After a disaster, you're generally expected to take necessary precautions to prevent further damage. This could include covering broken windows or turning off water after a burst pipe.

• Documentation for Claims: In the event of a claim, having photos, videos, or receipts of your property can expedite and validate your claim.

• Prompt Reporting: It's crucial to report any potential claim as soon as you become aware of it. Delays can result in reduced coverage or claim denial.

• Cooperation During Claims Process: Once a claim is filed, you must cooperate with the insurer's investigation. This could include providing necessary documents, allowing property inspections, or even testifying under oath.

Scheduling (Listing) Certain High-Value Items to Ensure Coverage

When it comes to homeowner's insurance, "scheduling" personal property refers to specifically listing certain high-value items on a separate policy endorsement to ensure they are adequately covered. This is because most standard homeowner's insurance policies have limits on the dollar amount they'll cover for specific categories of items. Scheduling these items often provides broader coverage and doesn't typically require a deductible.

Here's a list of typical personal property that homeowners might consider scheduling on their insurance policy:

• Jewelry & Watches: Especially high-value or antique pieces whose value might exceed typical policy limits.

• Fine Art: Including paintings, sculptures, prints, and other valuable artworks.

• Collectibles: This can encompass a broad range, such as stamps, coins, sports memorabilia, vintage toys, and more.

• Antiques: Furniture or other items that might be of significant age and value.

• Designer Clothes and Furs: Certain high-value designer items or coats and other items made of fur or with fur trim.

• Musical Instruments: Especially professional-quality instruments or those of significant age/value.

• Cameras & Photographic Equipment: High-end digital cameras, vintage cameras, lenses, and other related gear.

• Silverware & Goldware: Fine silver or gold pieces and flatware can be of considerable value.

• Firearms: Antique or collectible firearms, as well as more standard weapons, might need to be scheduled to be fully covered.

• Computers: While many homeowner's policies cover computers, those of significant value or used for business might benefit from being scheduled.

• Golf & Sports Equipment: High-end golf clubs or other professional sports equipment.

• Wine & Spirits Collections: For those with valuable or extensive collections.

If homeowners believe they have items of significant value, it's always a good idea to have them professionally appraised to ensure accurate scheduling. Moreover, keeping photos, purchase receipts, or appraisals is crucial for documenting the item's existence, condition, and value.

For many, our personal belongings hold both sentimental and monetary value. To ensure they are properly protected from theft, loss, or damage, it's essential to understand the ins and outs of homeowner's insurance and the concept of scheduling personal property. 

When in doubt about how to best protect your treasured items, reaching out to an attorney who is familiar with property and insurance laws in your state can offer clarity. Such expertise can guide homeowners in making the right choices to safeguard their valued possessions.

Know the Laws with LegalFix

While a homeowner's insurance policy is indeed a protective shield against unexpected setbacks, the complexity and intricacies of its terms can be overwhelming. It's essential to understand not just the benefits but also the obligations it enshrines.

When facing questions or disputes related to your homeowner's insurance, having access to affordable, reliable legal advice can make all the difference. A seasoned attorney in your state, well-versed in insurance law, can help you navigate the labyrinthine clauses, ensuring that your home remains your safest haven.

Whether you want to learn more about your rights as a policyholder or just want a better understanding of how our legal system works, LegalFix is your go-to source for free legal information. You can find helpful articles and state-specific explanations of nearly 1,600 legal topics—or browse state and federal statutes to better understand the laws that affect you. Just visit LegalFix.com to find all this content—and check back often for more valuable legal products and services coming soon.