Tom's BlogInvesting in a home is something of great importance and value so you must ALSO invest wisely when choosing the right insurance protection. However, when it comes to finding the right coverage under your NC Homeowners Insurance policy, questions become rampant. What does the Standard North Carolina Homeowners Insurance policy cover?
The standard NC Homeowners policy is divided into 2 sections, which are Property Coverage and Liability coverage. Let’s take a closer look so that you will better understand how YOU and YOUR HOME are covered.
Property Coverage is divided into 4 separate sections:
Coverage A – Dwelling Coverage This provides protection for your home and the structures ATTACHED to your home.
Coverage B – Other Structures Coverage This coverage is for structures OTHER than your home that are located on your property, such as a detached shed or garage.
Coverage C – Personal Property Coverage This is protection for the contents of your home, such as furniture and clothing.
Coverage D – Loss of Use Coverage This is protection for your additional living expenses (ALE) when your home becomes damaged resulting from a covered peril, such as fire. Under your standard NC homeowners policy, this protection covers expenses that you would not normally have until your home can be repaired. This may involve hotel expenses, cost of restaurant bills, etc.
A standard NC homeowners insurance policy covers specific losses, while other losses MAY be excluded, such as flood. NC homeowners policies are designed to cover losses that would MOST LIKELY occur, as to keep the insurance rates at a lower cost. Some excluded perils MAY be covered if you purchase a separate policy designed for that exposure. It is always wise to discuss the right type of coverage for you and your home with your NC independent agent, so that you will be properly covered for your home investment.
Liability Coverage of the NC homeowners insurance policy is broken down into 2 segments:
Personal Liability
Medical Payments to Others
Personal Liability provides coverage when you, OR any other relatives living in your home, are legally liable for damages to others. For example, if you are having a cookout and someone falls on your property at the broken stairs by the door, you could be held liable for their injuries sustained because of possible neglect. Your injured neighbor COULD sue you for their injuries. This type of personal liability coverage would protect you against cost of legal expenses and/or medical expenses, should you be legally liable.
Finally, let’s move on to Medical Payments to Others Coverage. This protects you for cost of incurred medical bills for others that are on your property who are injured, or injuries that are caused by you. It, however, does not pay for any medical bills for you! The same guest we referred to earlier, who fell at the cookout at your home, would be covered for his/her medical bills under this NC homeowners coverage. Sometimes, this coverage is referred to as “good will coverage.”
