Home Insurance 101

A homeowners insurance policy provides coverage for damage caused by most disasters. There are exceptions. The most significant exceptions are:

• Flood or water that backs up through sewers or drains
• Earthquake and earthquake aftershocks
• Landslides and mud slides

Sunstate offers flood insurance as a separate policy, water back-up coverage which is available as an endorsement, and earthquake insurance. Earthquake insurance is only available in some states. Speak with a Sunstate representative or a local Sunstate agent to find out if these coverages are needed in your area.

It is important to choose the right coverage for your home. If you choose lower coverage because it lowers your monthly premium, you might end up paying more out of pocket if a covered accident occurs. You should work closely with your agent or Sunstate representative to determine the right coverage for you.

For basic homeowners policies, a specific minimum amount of coverage is required for each of the major property coverages, based on the primary amount of insurance selected.

• Coverage A (Dwelling) = Replacement Cost for the House - usually determined by you working with your agent or Sunstate representative
• Coverage B (Other Structures) = 10% of your Coverage A limit
• Coverage C (Personal Property) = 50% of your Coverage A limit
• Coverage D (Loss of Use) = 20% of your Coverage A limit.

For example, if your home is insured for $100,000 under Coverage A:

• Other Structures (Coverage B) is $10,000
• Contents (Coverage C) is $50,000
• Loss of Use (Coverage D) is $20,000.

Know the basics, plan for surprises

The deductible on your homeowners policy applies to the property portion of the policy. A deductible is the amount you would have to pay out of your own pocket before the insurance coverage takes over. Typically, increasing your deductible reduces the cost of your homeowners policy.

The amount you choose for your insurance deductible depends on how much you are prepared to pay if a covered accident occurs to your home. When choosing a deductible, keep your budget in mind to minimize any impact to your current lifestyle.

Speak directly with a Sunstate representative or your agent about specific deductible options available to you.

Legal responsibility for you, a thorough response from us

Liability insurance is about responsibility. If you're found legally liable for an unintended injury or accident, this coverage can make all the difference for both your state of mind and the state of your finances.

Personal liability (Coverage E)

Provides coverage for bodily injury or property damage to others caused by you , your family members or pets. For example, let's say your dog bites a guest, someone falls down your stairs, or your child throws a ball through a neighbor's window -- you may be found legally responsible for these actions. Personal Liability coverage helps pay for the costs of these damages. It does not cover damage to your property.

Most homeowner policies provide a minimum of $100,000 of liability coverage. However, you can increase this amount up to $500,000. If your homeowners liability limits are lower than the cost of your assets and your assets are valued more than $500,000 dollars, consider an Umbrella policy. See Excess Liability Insurance 101 for more information.

Liability coverage exclusions

There are some things a homeowners policy does not cover. Some examples include:

• bodily injury or property damage which is expected or intended by the insured
• bodily injury or property damage arising out of business pursuits
• bodily injury or property damage arising out of rental of any part of the premises
• liability arising out of ownership, maintenance, use, loading or unloading of aircraft, motor vehicles or water craft
• liability arising out of war or insurrection
• liability assumed under contract or agreement
• property damage to property owned by, used by or in the care of the insured
• bodily injury which is covered under a Workers Compensation policy

Coverage wherever you call home

If your house is damaged by a loss covered by your policy and you have to vacate your home during repairs, Sunstate still has you covered.

Loss of Use coverage

Essentially, Loss of Use coverage pays for the additional costs you incur for housing and other living expenses which are over and above your normal costs, if a major loss makes your house uninhabitable and you have to move out temporarily while it's being repaired. This is shown as Coverage D.

While going through day-to-day life during reconstruction might be an ordeal, moving your family into your in-law's guest room could be unbearable. At the same time could you really imagine squeezing the costs of a hotel or temporary apartment into your current budget?

Speak with a Sunstate agent or representative and get an idea of how much Loss of use coverage you should ideally incorporate into your overall homeowner insurance quote.

Additional coverages available to you

Sunstate philosophy of providing smarter coverage at a better price would hardly be possible if our customers couldn't adjust their policies to their needs using additional coverage options.

Home insurance coverage is designed to provide financial protection in the event of covered damage to your home, such as fire or water damage.

There are a number of optional coverages (also called endorsements) which enhance your basic homeowners policy either by adding or removing certain coverages. Some of the more common add-on coverages include:

• Special Coverage for Contents: Provides broader protection for your possessions. This means that your personal property is covered in more situations than the base policy.
• Contents Replacement Cost Coverage - Pays replacement value on property damaged by a covered loss...with no deduction for depreciation...subject to your policy limits and deductibles. Special limits apply to certain items such as jewelry, watches and furs.
• Valuable Items Plus: provides higher limits and worldwide protection for special property such as jewelry, silverware, fine art, furs, cameras, firearms, musical instruments, and home computers for an extended variety of losses. Should you need even higher amounts of coverage than that offered by the Valuable Items Plus endorsement, a separate Valuable Items policy is also available.
• Water Back-up of Sewers or Drains - provides coverage up to a specific dollar amount if water backs up through your sewer or drain, or overflows from your sump pump.

Let a Sunstate agent or representative give you guidance on what optional coverages can best complement your standard home insurance coverage so that you're adequately covered for your real needs without breaking your budget.

Covering your home inside and out

Rare is the event that damages a home without doing damage to your personal possessions that are kept inside your home. Sunstate offers smart coverage options to policyholders that know they're not just insuring their homes, but alsothe lives they lead inside of it.

Personal property (Coverage C)

Your personal property such as furniture, clothing and appliances are covered. Certain types of possessions have limited coverage while some are specifically excluded from property coverage because of their nature or because they are generally covered by other types of policies. Examples of excluded items are:

• Animals, birds or fish
• motorized vehicles or aircraft, including equipment and accessories
• aircraft or aircraft parts

Some examples of classes of property that have specialized limits of coverage for some or all loss types:

• money or related property, coins and precious metals other than tableware
• water craft, including trailers and equipment
• jewelry, watches, furs and semi-precious stones
• firearms
• silverware, goldware or pewterware
• business property

These types of property can be insured with Sunstate using specialized endorsements or separate policies. For example, you can expand coverage for business property using the Sunstate's Home Business Coverage endorsement (in some states). You can insure jewelry, furs, silverware and other treasured possessions on a Valuable Items. Plus endorsement or on a Personal Articles Floater policy.

Umbrella coverage is for Peace of Mind

Umbrella insurance is designed to give you added liability protection over and above the basic limits in your homeowners, automobile, watercraft and recreational vehicle policies. Umbrella insurance pays after you have used up underlying insurance. Typical policies provide $1 million to $5 million in additional coverage.

This coverage can be purchased as an attachment to your homeowners policy or as a separate policy. Our Excess Liability Insurance 101 course provides much more information on this important protection.

Click Here for more information on this coverage.