What else can your homeowners cover?

                                                                   
Every person that owns a home knows that homeowners insurance will provide coverage if your house is damaged and needs to be repaired. A typical insurance policy will provide coverage against normal everday perils that include fire, theft, wind, explosion, riots, and falling objects..... but what else can a homeowners insurance policy cover? 
Here are just a few optional coverages in case you need them:

• Personal Injury - Let's say you have a teenage daughter accidentally spreads a rumor at school about other classmates. And one day a sheriff knocks on your door with a court summons notifying you that you need to appear in court because your Jenny was bullying another child over the internet. It's real and it happens more than you think. A normal homeowners policy will not extend liability coverage for this type of claim. But if you make sure to add personal injury it can.
• Identity Theft - The fastest growing crime in the US is identity theft. Did you know that you can add identity theft reimbursement onto your homeowners policy? Yes you can. If someone steals a credit card and goes on a shopping spree and leaves you with a giant bill, the credit card companies will normally waive these charges. But what about the impact to your credit score. It can takes years to reestablish your credit score and get it back in good standing. This optional coverage will pay for the legal fees involved to get your credit score back in order.
• Home Business - This can be a great endorsement to add to your homeowners insurance if you operate a small business out of your home. This add-on can provide coverage for business property, business income, and accounts receivable that would normally be excluded from a normal homeowners policy. This coverage can be limited based on type of business and total annual revenues but great coverage if you fit the eligibility criteria.
• Sinkhole Coverage - What if your home were swallowed up by a sinkhole while you were away on vacation? Your homeowners would cover this, right? WRONG. A normal homeowners policy will specifically exclude earth movement including sinkhole formations. So it is possible that you could lose your entire house in the blink of an eye and not even be covered. 

These are just some of the optional coverages that you can add on to expand the scope of your typical homeowners policy. We always suggest consulting with your local independent agent to find the appropriate coverage to fit your specific needs. -- @MooneyInsurance

Homeowners insurance & tree damage

If a tree falls on your house but doesn't make any noise - are you still covered?

Our agency has received a lot of calls regarding tree damage from the recent polar vortexes popping up in our area. Customers want to know if trees are covered and to what extent. Keep in mind that your homeowners policy covers damage to your house and not the land. So if a tree falls in your yard with no additional damage, your insurance policy will not pay to clean up the fallen tree.

What if a tree falls and causes damage to a fence or gazebo?

Most policies have "other structures" coverage built-in which would provide coverage to repair or replace certain structures that are on your property but not attached to your house. Coverage would apply assuming it fell because of a covered peril such as wind or weight of snow.

Does my neighbor's insurance pay if his tree hits my house?

NO. Your policy will cover damage to your structure. Your neighbor's policy does not insure your property. Again, we assume that the damage was caused by a storm and not negligence on the part of your neighbor.

Will my homeowners policy pay if a tree hits my car? 

NO. Homeowners insurance does not usually provide damage to vehicles. You would have to file a separate auto claim under your comprehensive coverage to repair damage from a falling tree.

** Keep in mind that homeowners insurance varies by company and state so it is important to check with your local independent agent to see if your specific damage would be covered. 

What is "Actual Cash Value"

ACV or Actual Cash Value is a loss settlement option that establishes how much an insurance company is going to pay in the event of a claim. Insurance companies normally take the replacement value of an item and subtract a specified amount for depreciation to calculate the ACV. Most people just assume that their policy affords the amount to replace everything, but that is not always the case.

Why is this important?
If there is a fire at your house and it costs $200,000 to rebuild the entire structure, the insurance company could wind up only paying you $150,000 because that is the depreciated amount.

Does this apply exclusively to the building?
No, your personal items can be replaced on an ACV basis as well. If you had a sofa that you purchased five years ago for $6,000 the insurance company could give you a check for $3,000 based on the age and condition.

How do you increase coverage to avoid ACV?
It is very common for all insurance companies to offer "Replacement Cost" options for both your home and contents. Sometimes this coverage is tied in directly to the policy and other times it is an optional coverage added by endorsement.

All homeowners policies are different and vary by company. It is important to consult your insurance agent to make sure you have the proper coverage.