Rhode Island homeowners insurance coverage is important to protecting yourself, the long term investment of your home as well as your personal property. When shopping for homeowners insurance coverage in Rhode Island there are many different policies with different rates as well as different types insurance. Understanding the options for coverage is essential for choosing the best RI homeowners insurance policy for you.
Two items that are not available in standard policies are flood and earthquake coverage. These have to be purchased separately. Depending on where you live coverage for wind damage is not covered either. If you live in a high risk area for tornados and heavy storms you will have to purchase wind damage separately as well.
In Rhode Island a lot of homeowners policies will insure homeowners against identity theft at no extra charge.
Levels Of Homeowners Insurance Coverage In Rhode Island
Your coverage options are based on what you choose to insure. Here is a breakdown of your choices.
- HO1 – The first level specifies perils with very limited coverage. This is usually the minimum insurance that your lending agent will require.
- HO2 – The second level of homeowners insurance specifies perils with less limited coverage. Where it will not cover everything, it will cover a lot more than a HO1 policy.
- HO3 – This level of insurance covers all perils on buildings and specified perils on personal property excluding the risk of floods, earthquakes, war and nuclear accidents. You will want to look into the changes that were made in the act-of-war exemption. These have changed since the terrorist attack of September 11. Some insurance companies will now cover your home in the event of a terrorist attack. This is where you are able to start adding your personal effects as well as riders for jewelry, art or antique collections.
- HO4 – This is renters insurance. It will cover the cost of your personal effects but not the cost of the house you are living in.
- HO5 – Condominium insurance. This covers the owner’s personal property loss as well as the loss of use of the condo.
How To Know What Type Of Homeowners Insurance Coverage You Need
Here is a list of questions to ask yourself when deciding what kind of coverage and how much you will need. Are you looking at purchasing only the minimum insurance that your mortgage lender is requiring of you or do you want a comprehensive plan that protects your property and belongings?
What’s your neighborhood like?
Is the home in a high crime rate area? If it is you will want to make sure you have optimal insurance against theft and vandalism. How far away is the local fire department and hydrant? If you have a slow response time of the fire department, you will want to make sure that you have optimal fire coverage.
Do you have pets?
Dog bites are one of the things that can drive up insurance rates. You are legally responsible if you dog bites someone on your property or kills a neighbors pet and most times homeowners insurance will offer coverage for this as long as your dog does not have a history of aggressive behavior. You will have to check with the insurance company, it may be part of your standard coverage or you may have to have it added on, especially if you have a breed of dog that is considered high risk for attacks, such as a Pitt Bull or Doberman. High risk breeds can raise your premium, can exclude you from dog bite clauses in your insurance and your insurance company can refuse to renew your policy.
Does history repeat?
Knowing your property’s past is important to its future and your current costs. This can be determined by looking at the Home Disclosure Report or the Comprehensive Loss Underwriting Exchange (CLUE). These two reports will not only tell you what kind of problems the house has had in the past, but it will give you an idea of what kind of problems it may have in the future.
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