Homeowners Insurance Information
Homeowners Coverage: Insurance for Owner-occupied and Non-owner-occupied Properties
Owner Occupied Home Quote
Non-Owner Occupied Home Quote
New York is among the top ten states with the highest home prices. You’ll need, on average, about $385,000 to buy a home. That just goes to show what an investment a property represents to owners.
To protect your home, belongings and family, you’ll need homeowners insurance. Given the vast diversity of New York homes, occupants and owners, you will always need targeted protection. Let Island Wide Insurance Agency help you find the perfect match.
The Importance of Homeowners Insurance
No laws require you to carry coverage, but that doesn’t mean you should not get a policy. First, most mortgage lenders require home buyers to carry coverage consisting of private mortgage insurance (PMI) and homeowners coverage. The PMI coverage will protect the lender’s interest in the home. Homeowners protection will cover
Regardless of whether you have a requirement, we advise that you carry coverage anyway. It is one of the best ways to protect your solvency in the event of a loss. Think about what you stand to lose if an unforeseen problem damages or even destroys your house or possessions. With home insurance, you can file a claim for the cost of such damages. Your policy can therefore help pay for necessary repairs.
Homeowners Insurance Coverage Explained
The homeowners coverage you might need includes:
- Structure protection: Coverage insures your house, garage and often detached buildings on the property. It can cover the structure in case of damage from fires, weather, theft or other issues.
- Possessions insurance: This policy pays for damaged belongings inside the insured structure. Protection might cover everything from food in the pantry to computer systems.
- Liability coverage: If you harm someone else or damage their property, you can use this coverage to compensate them. Coverage often pays for incidents both on or off your property.
- Expenses reimbursement: Do you need to move out of your home temporarily after damage occurs? Let this coverage reimburse you for expenses like dining or hotel bills.
You also might need a variety of additional policy options to create better protection.
- Umbrella insurance: This is extra liability coverage that kicks in once you exceed the limits of your standard policy. It will often pay additional funds on top of those limits. It can also cover claims not insured by standard coverage.
- Animal liability coverage: Coverage pays for harm your pet causes to others or their property.
- Valuable items riders: Do you have expensive art or jewelry in the home? Standard possessions coverage might not provide enough coverage for them. Policy extensions however, often can.
- Flood insurance: Most standard home policies don’t cover damage from weather-related floods. Coverage backed by the National Flood Insurance Program (NFIP) will cover at-risk homes. In some cases, you might have to get this coverage based on where you buy.
- Earthquake insurance: In areas prone to quakes, you will likely need this coverage.
Keep in mind, you might need to ask your argent to add this coverage onto your policy.
How do I get enough homeowners coverage?
Your coverage should carry financial limits and options that appropriately match your property’s value.
- Ask your agent to include coverage for the structure’s full replacement cost in case of a total loss. This coverage will pay the full cost of a new home rebuilt at today’s construction costs.
- Consider the limits of your possessions coverage. Some policies will cover replacement costs, while others will only offer actual cash value protection. Cash value protection will only pay you an item’s depreciated market value at the time of loss.
- Some possessions policies have per-item limits. They will only pay set amounts on certain items.
- Your policy will likely include deductibles. Let your agent help you determine the appropriate balance of deductibles and premium costs.
With the right protection, you’ll have a better chance of paying the least amount possible from your own pockets following home damage.
Coverage Based on Occupancy
Your plans for occupying the property might mean you need different policy structures.
Owner-occupied coverage: If you plan to live in the house you buy, this is the protection you need.
Non-owner-occupied insurance: If you don’t plan to live in a home, you’ll have to choose among several types of non-owner-occupied coverage.
- Second home coverage: Vacation homes need coverage both when you live there and when you don’t. In most cases you must get a second policy even if you only use the home temporarily. However, talk to your agent first. Sometimes, your standard homeowners policy on your primary dwelling will cover a second home.
- Vacant home protection: If no one currently lives in a house, you might need this coverage. Perhaps you are getting a home ready to rent, or now own the home of a deceased relative. Those are situations where this coverage might apply.
- Insurance for landlords: Owning a rental home means insuring it in your interest. You’ll still have to protect the property and possessions you own. Keep in mind, however, that tenants will likely need their own renters’ insurance to cover their own liabilities and possessions.
Ask your agent if you have an escrow option for your policy. In escrow, the cost of your homeowners insurance will combine with your mortgage, and you will pay both bills at once.
Some homeowners have an escrow requirement by their lender. Others have the option to pay both costs separately. If you want the convenience of only paying one bill, you might find this opportunity convenient. Keep in mind, however, you might still have to pay for PMI insurance separately.
If you are looking for customized home insurance in Shirley, Mastic, Mastic Beach, Moriches, East Moriches, Center Moriches, Yaphank, Brookhaven, Bellport, Patchogue, and all of Long Island, New York look no further than Island Wide Insurance Agency. We have pricing to fit your needs and budget. Give us a call today at 631-395-1000.
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