Q. What does my home owners policy cover?

A. Homeowners insurance covers your house and adjacent structures (your garage) and your personal belongings from specific types of loss. The most common causes of loss would be fire, theft and vandalism. Additionally, home owners coverage provides you with liability protection so if you or a member of your family is responsible for injuring someone or damaging the property of someone else, your policy would cover it. Also, home owners coverage would provide for additional living expenses, such as hotel expenses, in the event of a covered loss.

Q. Is the present amount of dwelling coverage on my home owners policy sufficient?

A. You are adequately insured if the value of your policy is enough for you to rebuild your house in the event of a total loss. A periodic review of your policy is wise to insure that your coverages have kept pace with current market conditions.

Q. If my home is damaged from a covered loss and I cannot live in it while repairs are made, will my homeowners policy cover my living expenses?

A. Yes. Generally, home owners coverage allows 20 percent of the amount of coverage on your home for Additional Living Expenses. So for each $100,000 coverage on your home you could receive as much as $20,000 for Additional Living Expenses.

Q. If my home or personal property is water damaged because a pipe burst in my home, what will my home owners policy cover?

A. In order for water damage to be covered, it must be sudden and accidental. In other words, damage caused by a slow leak would not be covered. In the event of damage caused by a sudden and accidental leak, you would be covered up to your policy limits to repair or fix damages to your home or personal property, and for any additional damages caused while the faulty system is repaired. For example, you would be covered for the expense of tearing out the wall or ceiling to replace a broken pipe, but you would not be covered for the cost of replacing the pipe.

Q. Is there any limit to the insurance on my silverware?

A. In most states, silverware is covered up to $2,500. If you require higher limits of coverage you should consider “scheduling” the silverware.

Q. If a visitor is injured on my property, what protection do I have?

A. If you are legally liable for the injury, you would be covered under the Liability portion of your policy up to the policy limits. Additionally, your insurer usually will pay for medical expenses incurred by your visitor, up to specified limits. Exclusions and limitations may vary from state to state.

Q. If I conduct business at home, is my business property covered by my homeowners policy?

A. Yes. There is up to $2,500 coverage for property on the “residence premises” that is used for “business” purposes.

Q. May I cancel my homeowners policy?

A. You may cancel your insurance at any time and the insurance company will return to you the unused portion of your premium. However, if there is an existing mortgage on your home the mortgage company will probably require that you have continuous, adequate homeowners coverage.

Q. What is “replacement cost” and “actual cash value”?

A. Replacement cost refers to what the cost would be to replace your home with another, of the same quality, on the same site. Actual cash value is replacement cost less depreciation. Overall age, condition and character of your home are considered when determining actual cash value.

Q. What is a deductible?

A. The deductible is the initial portion of a loss that the policyholder is responsible for. The insurance company would be responsible for amounts exceeding the deductible up to the specified limits.