Home FAQs - Jak Insurance

1) What does homeowners insurance cover?

A standard homeowners policy typically covers:
The structure of your home (Dwelling)
Detached structures (like fences or sheds)
Personal belongings
Liability protection
Additional living expenses if the home becomes unlivable

2) What is NOT covered under a standard policy?

Homeowners insurance usually does NOT cover:
Flood damage (requires separate flood insurance)
Earthquake damage (separate policy or endorsement)
Normal wear and tear
Maintenance issues
Mold from long-term leaks
Pest damage (termites, rodents)

3) What is Coverage A – Dwelling?

Coverage A protects the main structure of your home, including:
Roof
Walls
Foundation
Attached garage
Built-in appliances

4) What is Coverage C – Personal Property?

This covers your belongings such as:
Furniture
Clothing
Electronics
Appliances (not built-in)
It may also cover items stolen outside the home (like from your car or while traveling).

5) What is personal liability coverage?

Liability coverage protects you if:
Someone is injured on your property
You accidentally damage someone else’s property
You are sued for negligenceIt covers legal defense costs and settlements (up to your policy limits).

6) What is Loss of Use coverage?

If your home becomes unlivable due to a covered claim, this pays for:
Hotel stays
Temporary rent
Extra food expenses
Other necessary living costs

7) What is a deductible?

A deductible is the amount you pay out of pocket before insurance pays.Example:
If your deductible is $2,500 and the damage is $10,000:
Insurance pays $7,500.

8) Why are there separate hurricane deductibles?

In states like Florida, hurricane deductibles are often a percentage (2%, 5%, etc.) of your dwelling coverage.Example:
If your home is insured for $300,000 and you have a 2% hurricane deductible:
Your deductible would be $6,000.

9) How is my home’s coverage amount determined?

Insurance companies estimate:
Rebuilding cost (not market value)
Construction materials
Square footage
Labor and material costs in your area
It is based on reconstruction cost, not what you paid for the home.

10) What is Replacement Cost vs. Actual Cash Value?

Replacement Cost:
Pays to replace damaged items with new ones.
Actual Cash Value (ACV):
Pays replacement cost minus depreciation.
Replacement cost provides better coverage.

11) Does homeowners insurance cover roof damage?

Yes, if the damage is caused by a covered peril like:
Wind
Hail
Fire
It does NOT cover:
Old age
Wear and tear
Poor maintenance

12) Does homeowners insurance cover water damage?

It covers sudden and accidental water damage, such as:
Burst pipes
Overflowing appliances
It does NOT cover:
Flooding
Long-term leaks
Groundwater intrusion

13) Why did my premium increase?

Common reasons include:
Rising construction costs
Increased claims in your area
Insurance market changes
Roof age
Increased property taxes (if escrow-related confusion)
Policy changes or endorsements

14) Do I need flood insurance if I’m not in a flood zone?

Yes, you may still want it.More than 20% of flood claims occur outside high-risk flood zones. Flood insurance is always a separate policy.

15) How can I lower my homeowners insurance premium?

Possible ways:
Increase your deductible
Install a newer roof
Add storm shutters
Install a security system
Bundle home and auto
Review coverage limits annually