Homeowners Insurance

Homeowner Insurance 101 FAQ

-What are the types of Insurance programs for homes?

There are 2 types of policies for homes

- Fire Dwelling - cover the main structure of the home and Perils covered can be added.

- Homeowners - cover both structure and personal items in the home and has more covered perils than Fire Dwelling. Some homeowners include windstorm.

- Windstorm - Also known as Wind and Hail. If your homeowners policy does not include windstorm coverage, you can ask an agent at Nsure N'save for details on buying one and optional coverage that is included.

-What is a deductible?

A deductible is an amount you must retain out of pocket before we as an insurance provider will pay for a claim. Deductibles do not typically apply to a third-party claim. For example, with a 2% hurricane deductible, a home insured for $500,000 would require the policy holder to absorb $10,000 of the ground-up loss before we will pay for a claim.

-What is Replacement Cost vs. Actual Cash Value?

Replacement cost is the cost to replace the entire home. When you insure your home for its estimated replacement value, we will reimburse you for the cost of rebuilding your home, subject to policy limitations, based on the size and structure of the home that was lost. Replacement cost is not:

  • The market value of the home
  • The home's purchase price
    • The cost of the land
    • The outstanding amount of any mortgage

Actual cash value is computed by subtracting depreciation from replacement cost. The depreciation is calculated by establishing a useful life of the home or item determining what percentage of that life remains. This percentage multiplied by the replacement cost equals the ACV.

-Why doesn't my homeowners policy cover flood?

Flood coverage has not been included in a traditional homeowners’ policy since the 1960's. Flood coverage is available through Nsue N'save as a separate policy as well as through the National Flood Insurance Program. Please call us for details.

To Make a payment on your Wellington homeowners policy please click here.

To fill out a quote form please click here.

To get a free quote on Flood insurance please click here.

What Flood Insurance covers and does not cover.