Homeowner insurance

Compare coverage with the home's actual use

Common homeowners-policy categories include the dwelling, other structures, personal belongings, liability and loss of use. Each has its own limits, conditions and exclusions. The NAIC homeowners guide explains the basic categories; a policy summary does not confirm payment for a particular loss.

Ask whether the settlement basis is replacement cost or actual cash value, which generally accounts for age and wear. Rebuilding cost differs from a property's sale price. Check deductibles, sublimits, repair conditions and any extended-replacement provision in the issued contract. Review the actual hazards, including whether flood, earthquake or another exposure needs separate coverage; avoid a blanket statement that all natural disasters are excluded.

Tell the insurer about rented rooms, a separate unit, short stays, vacancies or other changes of use before relying on coverage. Request written confirmation of the appropriate policy or endorsement, comparing complete dated quotes on the same facts. An owner's belongings, a resident's belongings and rental-income protection are different questions. Use the rental-policy review guide and a licensed insurance professional; an old national premium or state ranking is not a quote. Rentari does not sell insurance or determine coverage.