Your home will be one of the most significant investments you will ever make, both economically and emotionally. Your family will spend countless hours there, among some of your most prized possessions. In the event of any misfortune, let us give you the peace of mind knowing that you are well protected with a Maryland Home Insurance policy.
Standard Maryland homeowners insurance policies provide coverage for disasters such as damage due to fire, lightning, hail, explosions and theft. They do not cover floods, earthquakes or damage caused by lack of routine maintenance.
Maryland Homeowners Insurance - Replacement cost policies
Most Maryland homeowners insurance policies cover replacement cost for damage to the structure. A replacement cost policy pays for the repair or replacement of damaged property with materials of similar kind and quality. There is no deduction for depreciation–the decrease in value due to age, wear and tear, and other factors.
Maryland Homeowners Insurance - Guaranteed or extended replacement cost coverage
After a major hurricane or a tornado, building materials and construction workers are often in great demand. This can push rebuilding costs above Maryland homeowners insurance policy limits, leaving you without enough money to cover the bill. To protect against such a situation, you can buy a home insurance policy that pays more than the policy limits.
Maryland Homeowners Insurance - Building codes
Building codes are updated periodically and may have changed significantly since your home was built. If your home is badly damaged, you may be required to rebuild your home to meet new building codes. Generally, Maryland homeowners insurance policies (even a guaranteed replacement cost policy) won't pay for the extra expense of rebuilding to code. Many insurance companies offer an Ordinance or Law endorsement that pays a specified amount toward these costs. (An endorsement is a form attached to an insurance policy that changes what the policy covers.)
Maryland Homeowners Insurance - Inflation guard
Consider adding an inflation guard clause to your Maryland home insurance policy. This automatically adjusts the dwelling limit when you renew your policy to reflect current construction costs in your area.
Maryland Homeowners Insurance - Your personal possessions
Most Maryland homeowners insurance policies provide coverage for your personal possessions for approximately 50 percent to 70 percent of the amount of insurance you have on the structure or “dwelling” of your home. The limits of the home insurance policy typically appear on the Declarations Page under Section I, Coverages, A. Dwelling.
Maryland Homeowners Insurance - Replacement Cost or Actual Cash Value
You can either insure your belongings for their actual cash value, which pays to replace your home or possessions minus a deduction for depreciation up to the limit of your home insurance policy. Or you can opt for replacement cost, which pays the actual cost of replacing your home or possessions (no deduction for depreciation) up to the limit of your policy.
Maryland Homeowners Insurance - Insuring expensive items with floaters/endorsements
There may be limits on how much coverage you get for expensive items such as jewelry, silverware and furs. Generally, there is a limit on jewelry for $1,000 to $2,000. You should ask your agent or look it up in your Maryland home insurance policy. This information is in Section I, Personal Property, Special Limits of Liability. Insurance companies may also place a limit on what they will pay for computers.
Maryland Homeowners Insurance - Additional living expenses after a disaster
This is a very important feature of a standard Maryland homeowners insurance policy. This pays the additional costs of temporarily living away from your home if you can't live in it due to a fire, severe storm or other insured disaster. It covers hotel bills, restaurant meals and other living expenses incurred while your home is being rebuilt.
Maryland Homeowners Insurance - Liability to others
This part of your Maryland home insurance policy covers you against lawsuits for bodily injury or property damage that you or family members cause to other people. It also pays for bodily injury and property damage to others caused by pets. It pays for both the cost of defending you in court and for any damages a court rules you must pay.