NCDOI HurriClaims Center

Types Of Coverage - Homeowners

Find out what kind of insurance you may need to protect your home.

Homeowners insurance is sold as a personal package policy designed to cover a broad spectrum of perils associated with owning a home. A peril is an event that causes damage to property; two examples are fire and theft. Although insurance on your home is not required by North Carolina law, if your home is mortgaged your lender may require the purchase of insurance on your home.

Homeowners insurance also protects you against liability for accidents that injure other people or damage their property. The policy covers medical expenses for persons accidentally injured on your property.

The policy does not protect you against losses from floods, earthquakes, mudslides, mudflows or landslides. Contact your agent to discuss your options for obtaining coverage for these losses.

Property owners should consider whether to insure their property for the replacement cost or actual cash value. Replacement cost is the amount it would take to rebuild your home or repair damages with materials of similar kind and quality without deducting for depreciation.

Depreciation is the decrease in home or property value since the time it was built or purchased due to age or wear. Actual cash value is the amount it would take to repair damage to your home after depreciation.

Most standard homeowners policies cover the contents of your home on an actual cash value basis. Many insurers offer an option for you to insure your property at replacement cost. The premium may be slightly higher for this coverage, but you may want to consider the option.