Homeowners and Renters Insurance
Homeowners and rental insurance is a financial protection policy that pays a lump sum if your house is damaged or destroyed by fire, weather, theft or other disasters.
Homeowners insurance is an important purchase for many people. There are two major reasons to buy homeowners insurance:
- Protect your assets: Homeowners insurance covers the structure of your home and your personal property, as well as your personal legal responsibility (or liability) for injuries to others or their property while they’re on your property.
- Satisfy your mortgage lender: Most mortgage lenders require you to have insurance as long as you have a mortgage and to list them as the mortgagee on the policy. If you let your insurance lapse, your mortgage lender will likely have your home insured. Compared to a policy you would buy on your own, the premium might be much higher and the coverage will be limited to damage to the structure of your home. The lender can require you to pay this higher premium until you get your own homeowners insurance again.
More information regarding homeowners insurance is available on the National Association of Insurance Commissioners website: https://content.naic.org/consumer/homeowners-insurance.htm
Resources Relating to Homeowners Insurance
Renters insurance is another important insurance product to consider. If you live in a rented apartment, house, or condominium, your landlord’s insurance doesn’t cover the things you own. In addition to covering your belongings, some policies will also cover your living expenses if you are unable to live in your apartment or home because of an insured loss. Renters insurance may also protect you from lawsuits alleging negligence.
Read our consumer advisory on rental insurance, especially important for college and university students: https://www.insurance.nh.gov/consumers/homeowners-and-rental-insurance/consumer-advisory-rental-insurance
More information regarding renters insurance is available in this NAIC Consumer Insight: https://content.naic.org/article/consumer-insight-renting-your-home-protect-your-belongings-renters-insurance
Does my homeowner’s policy cover flood damage?
No. The homeowner policy specifically excludes water damage resulting from flood.
This exclusion includes flood, surface water, wave tidal water, overflow of a body of water, water that backs up from sewers, drains, or sump pumps, as well as water that seeps through the basement walls and floors.
The National Flood Insurance Plan (NFIP) is the only source for obtaining flood insurance for residential property. Your agent should be able to assist you if you need or desire flood insurance coverage.
For additional information, visit the National Flood Insurance Plan website at: http://www.floodsmart.gov.
Can my insurance company non-renew my policy if I have only one claim?
No. The nonrenewal of a homeowner’s insurance policy is not allowed if the nonrenewal is based solely on the insured having filed a single valid claim within any one previous or current policy term. RSA 417-B: 3-a.
If a tree falls on my house from my neighbor’s yard, who pays for the damage?
Generally, the insurance responsibility lies with whoever’s property is damaged. In other words, if a tree falls on your home, no matter where the tree came from, your insurance company should pay for your home repair.
What is the replacement cost?
Replacement cost is the amount necessary to replace or rebuild your home or repair damages with materials of similar kind and quality without deducting for depreciation.
I had a loss, and my roof needs repair. The company is only willing to pay for repairing part of the roof, even though the contractor said I need to replace the entire roof.
The company is only obligated to pay the cost of repairing the part of your roof that was damaged by a covered peril. If the entire roof needs replacing because of normal wear and tear, you will be responsible for paying the additional cost.
What does additional living expense or loss of use cover?
Most home insurance policies cover extra costs that you incur if your home is damaged by a covered peril and you cannot live there while repairs are made or if you are denied access to your home by government order. The coverage is generally subject to duration and /or monetary limits and commonly covers any extra expense incurred by you so that your household can maintain its normal standard of living. In some instances, this coverage may include the costs of a motel, eating in a restaurant, or storing some property.
What is the actual cash value?
Actual cash value means the dollar amount needed at the time of the loss to replace the property destroyed, less the property’s depreciation. Most standard home insurance policies cover the contents of your home (i.e., personal belongings) on an actual cash value basis, but it may be possible to purchase replacement cost coverage. You may wish to contact your insurance representative for further information regarding replacement cost coverage.
I have a homeowner’s policy. Is my home covered for damages caused by high winds or tornadoes?
Most homeowner policies cover damages to the dwelling caused by tornadoes or other wind damage. The homeowner policy covers the dwelling and personal property inside the home. It also covers storage buildings and other unattached structures on the insured premises, including personal property inside the building.
More often than not, such coverage is limited to a percentage of the insured value of your home.
This coverage would also apply to a mobile home insurance policy.
Our sump pump failed, and the insurance company is denying our claim because water backed up through our sewer. Can they do this?
Most insurance policies exclude water damage caused by water backing up through sewers or drains. Many companies offer this coverage through an endorsement that can be purchased for an additional premium. You may wish to contact your agent to inquire about placing an endorsement on your policy that would cover sewer back-up.
If I have additional questions or am not satisfied with the service that my agent or insurance company has provided, how do I contact the Department of Insurance?
You may reach a consumer services representative at 800-852-3416 or 603-271-2261.
Have a question about your coverage?
Call the Consumer Services unit at 603-271-2261, in state toll free (800) 852-3416 or email consumerservices@ins.nh.gov.
