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March 28, 2022

Everything You Need to Know About Homeowners Insurance

Homeowners Insurance is a category of insurance designed to protect you and your home.

Let’s reflect together– after a long day at work, or arriving from a trip, or even at the end of a long day at the beach, where do you want to go? HOME!

Our home is our refuge and the place where we rest and recharge. It’s probably the biggest investment you’ve ever made or will ever make. It’s the equity you’ve invested and will continue to invest in with your fair share of blood, sweat and tears.

Hours of work, years of savings and sacrifices and a lot of anxiety all for the dream of owning a home. With all that considered, have you ever wondered what would happen to this prized possession of yours in the event of a sudden tragedy? For a low monthly cost, you can purchase a Homeowners Insurance policy and put an end to these worries, or at least this one! 😉

So you’re probably already convinced you want to protect your asset, right?

It is very important that you understand exactly what is covered, how each item will be insured, and what will need specific coverage.

This type of insurance has some variations and there is always an option that fits your particular situation. All contracts will come with the following coverage:

Home insurance: insurance for your assets
Personal property: the insurance of your belongings
Personal liability: your legal security.

What are my options?

There are different types of policies for each situation. All policies with liability and coverage for personal belongings are identical. However, property coverage may vary as needed.

While the standard Homeowners Insurance insures the entire property, there is the HO-6 coverage that is designed for those who live in a building, insuring only what is inside the house. Talk to a BRZ consultant and find the ideal coverage for you.

What does Homeowners Insurance cover?

Your Homeowners Insurance policy exists to ensure the safety and maintenance of the life you have built for yourself, protecting:

Your home;
Other structures;
Your belongings;
Your lifestyle;
Your financial health in case of litigation (liability)

Understand how it works:

Your Home

Construction: walls, floors, roof, windows.
Fixed structure: sinks, sanitary ware, built-in cabinets.
Construction material: used on the property and located in or near the insured area.

Bear in mind that insurance for renters (HO-4) will only insure the “contents” of the house and condo insurance (HO-6) only the unit, not the entire building.

Other Structures

Buildings within the property, whether or not attached to the house, are included in the policy. Structures used for commercial and rental purposes are not covered.

Personal possessions

Protect the goods that are in your home or anywhere in the world! This type of coverage protects against damage, theft or even loss. In other words, if a pipe bursts and your television is ruined, your notebook is stolen in the restaurant or if you lose your cell phone on a trip, you are safe!

However, this insurance also covers damage to the belongings of third parties. For example, if something happens to personal items of a visitor or domestic worker who is in your house, this type of insurance will also help you.

Important note: to cover out-of-home items, they must be listed on the policy and the loss will be covered up to 10% of the coverage limit.

This rule does not apply if:

Goods in transit during a move have full coverage for 30 days from the 1st day of the move.
Goods are out of the house during repair or renovation of the house, also with full coverage during the construction period.

What goods are not included?

Some items are specifically excluded from coverage:

Motor vehicles
Tenant-owned if you have a room rented to someone outside your family.
Property rented to third parties outside the premises of the residence
Credit cards
Pets

There is coverage for every little thing you hold dear! Explain your situation with BRZ, and we will find the solution for you.

Your lifestyle

If something happens to your home and it becomes uninhabitable, whether due to an accident or damage caused by natural phenomena, the insurance can save you in three situations:

If you live in the property, this coverage will guarantee you temporary housing and may even cover additional expenses such as food and transport so that you can keep your routine as normal as possible.
If the property is rented, the policy will cover the loss of the rent.
If a civil authority prohibits the insured from using the residential facilities as a result of direct damage to neighboring facilities, the additional cost of living or loss of fair rental value will be covered for up to two weeks.

Your financial health in case of litigation (liability)

Liability insurance protects you from lawsuits in case of bodily injury or material damage that may happen inside your home.

It covers everything from attorney fees to medical expenses and bills. Expenses that can come out of your pocket if you don’t have liability insurance can create quite the hole in your budget.

Which perils are covered by Homeowners Insurance?

Policies usually include:

Fire
UV Rays
Domestic explosions
Wind
Civil commotion
Smoke
Hail
Vehicle collision
Aircraft crashes
Volcanic eruption
Vandalism
Intentionally caused damage
Explosion
Revolts
Theft

Important to know:

Home damage caused by a vehicle will only be covered in the case of a vehicle that does not belong to or is not being driven by the insured.
Internal damage caused by a windstorm or hail is covered only if the wind or hail enters the house through damage. In other words, if you left the window open, you will not receive a refund, but if the storm takes your roof and the rain wets your furniture, then you will be covered.
Vessels, outboards and related equipment are covered only while fully inside enclosed buildings.
Stains caused by smoke from agricultural productions or industrial operations are not covered.
Losses from vandalism or malicious damage to property on the premises of the residence are not covered if the dwelling has been unoccupied for 60 or more consecutive days.

**What does the standard Homeowners Insurance not cover?**

Valuables: High value items like jewelry, antiques, and collectibles may need additional coverage.

Home Business: If you run a business from your home, some equipment, inventory and important documents will not be covered under your home insurance. You will need specific insurance to protect your business.

Motor vehicles: Even though it is your property, the motor vehicle is not insured even if it is parked in your home garage.

However, your belongings inside the car are usually covered, even if they are stolen from inside the car while you are on the street.

Unregistered Items: If you cannot prove possession of an item or its value, you will not receive a refund. This is why it is best to always keep your receipts and take pictures of your belongings… Just in case.

Natural Disasters: Floods, erosions and earthquakes are rarely covered by general policies. If you are living in a place where these phenomena are likely to occur, ask for an additional policy.

Are you ready? Now you know everything you need to know to make an informed decision when it comes to purchasing your Homeowners Insurance. Do you have any questions? Give us a call!

Now that you know everything you need to know about Homeowners insurance, if you want to delve deeper into the subject, just enter our Home Insurance category.