Home Insurance 101
Unlike auto insurance, there is no law that requires homeowners in Pennsylvania to insure their property. However, if you take out a mortgage to finance the purchase of your home, the lender will likely stipulate that you must carry insurance to protect its interest in the property. Basic homeowners insurance coverages include:
- Dwelling — Covers the house and attached structures against perils such as wind, fire, lightning strikes and more. You should carry dwelling coverage that equals your home’s full replacement cost, which is the amount of money it would require to replace or rebuild your home with materials of similar kind and quality. For other options, feel free to give us a call at 717-582-2321.
- Other structures — Includes detached garages, outbuildings, barns and similar structures and is typically limited to 10 to 20 percent of the dwelling coverage.
- Personal property — Covers the contents of your home and other structures.
- Loss of use — Helps to pay for your living expenses if damage from a covered peril prevents you from living in the home.
- Personal liability — Provides protection if you or a member of your household are found legally responsible for injuries incurred by others while on your property.
Optional Insurance Coverages
Homeowners policies do not always cover everything that a property owner may need to protect. All policies have a separate “exclusions” section that lists specific perils or events that are not covered under the base policy. Examples include flood, water backup and sump pump overflow, home-based business activities and certain valuable items such as jewelry, guns, coins and art pieces. However, it may be possible to purchase additional coverage for these situations.
Types of Homeowners Policies Available in PA
According to the Pennsylvania Insurance Department, most companies that sell homeowners insurance in PA offer five basic policy types:
- Form 2 — Also known as Homeowners Broad Form, this policy covers basic perils such as fire, lightning, wind damage, vandalism and theft, as well as various additional perils such as building collapse, accidental water discharge and falling objects. Form 2 also includes personal liability protection.
- Form 3 — Homeowners Special Form policies are a more comprehensive version of Form 2 policies that cover the same perils, as well as the risk of direct loss to physical property.
- Form 4 — Also known as Tenants Homeowners or Cooperative Homeowners Form, these policies enable renters to protect their personal property.
- Form 6 — Condominium Homeowners Form policies enable condo owners to cover their personal property and liability — as well as the portion of the structure they own — against damages caused by the perils listed under Form 2.
Reisinger Insurance Agency, Inc. Can Answer All Your Homeowners Insurance Questions
If you still have questions about homeowners insurance policies and coverages? Reisinger Insurance Agency, Inc. can help. We’ve been serving the insurance needs of property owners and renters in Perry County and beyond for more than 60 years. Contact us for more information and a no-obligation insurance quote today.