Wilmington, NC Homeowner's Insurance

As independent brokers, we represent dozens of homeowner's insurance carriers. This gives us a tremendous advantage over most insurance companies, as we can meet or beat the cost of your current coverage the majority of the time.

Insuring your largest investment is a priority, and we can customize a solution to fit your budget. Repairing or replacing your home is most important, along with coverage for personal property. Your homeowner’s policy will also cover items that are not in your home or attached to your home.

A typical client probably thinks of locations rather narrowly. Homeowners insurance is supposed to cover property losses to the home.

Unless otherwise excluded, a homeowners policy provides coverage when an insured is liable for bodily injury and property damage arising out of any premises that qualify as an “insured location” that an insured owns, rents, or rents to others. The client’s home is naturally an “insured location,” but a number of other locations can also qualify. By pondering the policy’s definition of “insured location,” we discover that a homeowners policy may automatically provide liability coverage for losses at the following.

• A dormitory room
• A banquet hall
• A rented mini-warehouse
• A one- or two-family dwelling being built as a residence for the insured
• A grave marker or burial vault
• Vacant land

The homeowner's insurance policy does not cover liability for bodily injury or property damage arising out of premises owned by an insured, rented to an insured, or rented to others by an insured that does not qualify as an “insured location.” If the named insured has additional property such as rental houses, and these are not listed in the declarations, coverage for liability arising out of those premises is precluded.

The named insured would need to purchase a separate policy for these exposures or add liability coverage for the exposures onto the homeowners policy via the Additional Residence Rented to Others (HO 24 70) endorsement. With the attachment of HO 24 70, the owner would also want to purchase a dwelling fire policy to cover the real and personal property at these premises.

The homeowners coverage on personal property is surprisingly broad. Personal property owned or used by an “insured” is covered anywhere in the world. So far as property insurance is concerned, the homeowners policy defines “insured” to include not only the named insured but also household residents who are relatives of the named insured and their resident spouse or other persons under the age of 21 in the care of any household resident.

Full-time students who were also household residents before they left for school are also insureds, provided they are relatives under the age of 24 persons under the age of 21 who are in the care of a resident relative.

Clients often think of a homeowners policy’s liability coverage as slip-and-fall protection that protects the policyholder against claims by people injured on the residence premises. They overlook the fact that the policy also provides very broad personal liability coverage that protects the named insured and also some other parties and that coverage goes with them off the premises, anywhere in the world.

The homeowners policy’s liability coverage applies to the same people covered for property losses, as described above. Liability coverage also applies in some situations to other persons who have custody or use of the named insured’s animals, watercraft, or motor vehicles.

When an insured hurts someone or damages their property, any resulting claim is likely to be covered under the personal liability coverage provided by the homeowners policy. Usually. But not always. There are exceptions, of course. There is no coverage for intentional damage, and there is an absolute exclusion for most business-related liability. Nevertheless, the personal liability coverage provided by a homeowners policy is very broad, protecting people in most of their personal activities. As such, it is an important protection needed by everyone.

 As always, coverage is subject to a number of exclusions and limitations. Additional coverage may be provided through additional coverages and coverage extensions. Several popular options printed in the policy apply only if coverage is activated in the declarations. The insured should always read their policy to be aware of these exclusions, limitations and coverage extensions that may apply.