Homeowner's Insurance

Why do I need North Carolina homeowner's insurance?

North Carolina Homeowner’s Insurance is one of the most important types of policies available. More than likely, your home is the largest investment you will ever make. Finding and obtaining the right NC Homeowners Insurance Coverage is important. The fact is, you have numerous choices when deciding exactly how to protect your home. If you don’t own a home, you still need some of the same protections as those who do. For those of you who rent, what would happen if all of your personal belongings were lost in a fire? This section of allchoiceinsurance.com will help both the homeowner and the renter decide which NC Homeowners Insurance will best protect their respective investments. We will detail the common “Homeowner Forms” available in North Carolina as well as some of the additional endorsements available.

NC Homeowners Insurance Home Enhancement Coverage (HE-7)

The HE-7 Form comes in three versions: the standard HE-7, the HE-20, and the HE-21 (the HE-21 Extended Enhancement Endorsement is the most complete Homeowners Form in North Carolina). If presented with both the HO-3 and the HE-7 policies, and price is not the issue, you always want to choose the HE-7 policy. Coverage is normally provided under the HE-7 Form as follows:

  • Coverage A (Dwelling) - Minimum amount determined by individual carrier (typically higher minimum than the HO-3) Coverage A provides coverage for the actual “structure” if it is damaged by certain events. Coverage A also provides coverage for certain fixtures within home such as the plumbing, electrical, and HVAC system. You will need to insure the property to the replacement value of the home, as defined by the insurance companies evaluation.
  • Coverage B (Other Structures) - 10 Percent of Coverage A Coverage B provides coverage for other structures on the premises that are not attached to the primary dwelling. Coverage B is normally limited to 10 percent of the Coverage A limit. However, additional coverage can be purchased if needed.
  • Coverage C (Personal Property) - 70 Percent of Coverage A Coverage C provides coverage for your personal belongings or the belongings of your family members who live with you. Under an HE-7 policy Coverage C is automatically 70 percent of Coverage A. There are limitations for certain types of “personal property” within the standard policy, such as jewelry, fine arts, collectibles, guns. Let us know if you have anything that you couldn’t replace in the next week from a big box store, or an online retailer.
  • Coverage D (Loss of Use) - 20 Percent of Coverage A Coverage D provides coverage that will help with additional living expenses if your home is damaged by a covered cause of loss. Coverage D is normally 20 percent of Coverage A.
  • Coverage E (Personal Liability) - Minimum Coverage of $100,000 Coverage E provides coverage in the event you or a resident of your household are legally responsible for property damage or injury to others. This coverage will not protect you in the event of an intentional act. Because it is so inexpensive, we recommend carrying the maximum that the company will offer.
  • Coverage F (Medical Payments) - Minimum Coverage of $1,000 Coverage F pays for reasonable medical expenses for persons accidentally injured on your property.

NC Homeowners Insurance Special Form (HO-3)

The HO-3 Form may be used to provide coverage on a single family home or townhouse. Coverage is normally provided under the Special Form as follows:

  • Coverage A (Dwelling) - Minimum amount determined by individual carrier Coverage A provides coverage for the actual “structure” if it is damaged by certain events. Coverage A also provides coverage for certain fixtures within home such as the plumbing, electrical, and HVAC system. Most Insurance Contracts dictate that you insure the structure to a minimum of 80% of the “Replacement Cost” of the home.
  • Coverage B (Other Structures) - 10 Percent of Coverage A Coverage B provides coverage for other structures on the premises that are not attached to the primary dwelling. Coverage B is normally limited to 10 percent of the Coverage A limit. However, additional coverage can be purchased if needed.
  • Coverage C (Personal Property) - 50 Percent of Coverage A Coverage C provides coverage for your personal belongings or the belongings of your family members who live with you. Coverage C is normally 50 percent of Coverage A (if coverage is also provided for the dwelling under the policy). With the Replacement Cost Coverage endorsement, Personal Property Coverage is increased to 70%. There are limitations for certain types of “personal property” within the standard policy, such as jewelry, fine arts, collectibles, and guns. Let us know if you have anything that you couldn’t replace in the next week from a big box store, or an online retailer.
  • Coverage D (Loss of Use) - 20 Percent of Coverage A Coverage D provides coverage that will help with additional living expenses if your home is damaged by a covered cause of loss. Coverage D is normally 20 percent of Coverage A.
  • Coverage E (Personal Liability) - Minimum Coverage of $100,000 Coverage E provides coverage in the event you or a resident of your household are legally responsible for property damage or injury to others. This coverage will not protect you in the event of an intentional act. Because it is so inexpensive, we recommend carrying the maximum that the company will offer.
  • Coverage F (Medical Payments) - Minimum Coverage of $1,000 Coverage F pays for reasonable medical expenses for persons accidentally injured on your property.

NC Renters Insurance – Homeowners Contents Form (HO-4)

The HO-4 Form may be used if you rent a single family home or apartment. This form provides coverage for Personal Property. Coverage is normally provided under the Contents Form as follows:

  • Coverage C (Personal Property) - Minimum amount determined by individual carrier Coverage C provides coverage for your personal belongings or the belongings of your family members who live with you. With the HE-7 and the HO-3, the amount of coverage is derived as a percentage of Coverage A, but with the Renters Insurance policy you will need to determine how much coverage you need. Think of everything that you bring into the dwelling (stereo, TV, pots, pans plates, clothes, furniture, electronics, etc.) There are limitations for certain types of “personal property” within the standard policy, such as jewelry, fine arts, collectibles, and guns. Let us know if you have anything that you couldn’t replace in the next week from a big box store, or an online retailer.
  • Coverage D (Loss of Use) - Will be determined by the insurance carrier Coverage D provides coverage that will help with additional living expenses if your home is damaged by a covered cause of loss. Coverage D is normally 20 percent of Coverage A.
  • Coverage E (Personal Liability) - Minimum Coverage of $100,000 Coverage E provides coverage in the event you or a resident of your household are legally responsible for property damage or injury to others. This coverage will not protect you in the event of an intentional act. Because it is so inexpensive, we recommend carrying the maximum that the company will offer.
  • Coverage F (Medical Payments) - Minimum Coverage of $1,000 Coverage F pays for reasonable medical expenses for persons accidentally injured on your property.

NC Condo Insurance – Homeowners Unit-Owners Form (HO-6)

The HO-6 Form may be used if you own a condominium. This form provides for the condominium as well as Personal Property. In many cases a Condominium Association is responsible for insuring the structure and collective property (you should always read the Association Insurance Papers when you own a Condominium Unit). Many times the actual Unit Owner will be responsible for protecting the “sheet-rock & in”. Coverage is normally provided under the Unit-Owners Form as follows:

  • Coverage A (Dwelling) - $1,000 Coverage A provides coverage for the actual “structure” if it is damaged by certain events. Coverage A also provides coverage for certain fixtures within home such as the plumbing, electrical, and HVAC system. Most Insurance Contracts dictate that you insure the structure to a minimum of 80% of the “Replacement Cost” of the home.
  • Coverage C (Personal Property) - Minimum amount determined by individual carrier Coverage C provides coverage for your personal belongings or the belongings of your family members who live with you. With the HE-7 and the HO-3, the amount of coverage is derived as a percentage of Coverage A, but with the Unit-Owners (Condo) Insurance policy you will need to determine how much coverage you need. Think of everything that you bring into the dwelling (stereo, TV, pots, pans plates, clothes, furniture, electronics, etc.) There are limitations for certain types of “personal property” within the standard policy, such as jewelry, fine arts, collectibles, and guns. Let us know if you have anything that you couldn’t replace in the next week from a big box store, or an online retailer.
  • Coverage D (Loss of Use) - Will be determined by the insurance carrier Coverage D provides coverage that will help with additional living expenses if your home is damaged by a covered cause of loss. Coverage D is normally 20 percent of Coverage A.
  • Coverage E (Personal Liability) - Minimum Coverage of $100,000 Coverage E provides coverage in the event you or a resident of your household are legally responsible for property damage or injury to others. This coverage will not protect you in the event of an intentional act. Because it is so inexpensive, we recommend carrying the maximum that the company will offer.
  • Coverage F (Medical Payments) - Minimum Coverage of $1,000 Coverage F pays for reasonable medical expenses for persons accidentally injured on your property.

Optional Homeowners Insurance Coverages

  • Guaranteed Replacement Cost Coverage

    Guaranteed Replacement Cost Coverage provides for the Replacement Cost Settlement of your home in the event of loss. If your policy has been endorsed with this coverage, the insurance company will pay the difference between what your house is insured for and the actual amount it costs to rebuild the home (subject to certain limitations).

  • Personal Property Replacement Cost

    Personal Property Replacement Cost Coverage extends the replacement cost settlement to Coverage C of your policy. There are certain limitations, so be sure to ask your agent for further information.

  • Scheduled Personal Policy

    This is endorsement specifically covers “high value” items that tend to be more mobile than most items of Personal Property. Most often, this endorsement is thought of in terms of insuring jewelry!

  • Watercraft Endorsement

    The Watercraft Endorsement extends the liability coverages provided under Coverage E & F if your policy.

  • Water/Sewer Back-Up Coverage

    I tend to start suggesting this coverage heavily on homes that are 20 years or older, or if there are a good amount of trees in the yard. Let me know if this is something that you want to add to the policy. It covers you in case the sewage or septic system backs up in the house via the commode. This is not covered under your standard policy. Let me know if this is something that you want to add to the policy.

  • Flood Insurance

    Flood damage is excluded under standard homeowners and renters insurance policies. Flood coverage, however, is available in the form of a separate policy both from the National Flood Insurance Program (NFIP) and from a few private insurers.