FAQs About Homeowners Insurance

The Consumer Services Division receives many calls from customers with questions about their homeowners insurance. We have provided a list of the more frequent questions and the answers below. If you have a question that is not listed below or need further clarity, please feel free to ask your agent or contact us at 855-408-1212.

Frequently Asked Questions (FAQs)

Tab/Accordion Items

No, the homeowner policy provides coverage for direct physical damage. They only have to replace the damaged area; even if the shingles will not match. (Original shingles may be discontinued.)

The homeowners policy offers a combination of property and liability coverage. A dwelling policy provides limited property coverage. Dwelling policies may be used to insure a house that does not qualify for homeowners insurance. It may also be used to coverage additional structures (stand alone garages, metal buildings, workshops, etc.) located on your property.

Depreciation is the amount of money needed to fix your home, minus the decrease in value of your property because of age and use. If you have coverage for only the Actual Cash Value (ACV) on your home, you will only receive the depreciated amount. However, if you have Replacement Cost Value (RCV), your insurance company will reimburse you for the repair of your home or replacement of your belongings at today’s cost of the similar or like item.

Your deductble is the portion of a covered claim that you are responsible for paying. Deductibles can be fixed amounts, or a percentage of your total dwelling coverage amount. Some property owners may have a separate windstorm, hail, or "named storm" deductibles. Because there are a variety of deductible endorsement options, it is important to review the deductibles that are listed on the declarations page of the policy.

The homeowner’s policy is a package policy designed to meet the needs of most homeowners. Although it may provide coverage that you do not need, it is less expensive for the company to issue a policy this way than to tailor it to each policyholder’s needs. This results in a policy that provides broader coverage at a lower price.

The homeowners policy will pay reasonable expense, up to $500 for any one loss, for the removal of trees from your premises provided that the tree has damaged a structure or blocked the driveway.

Yes.  Homeowners insurance is not required by NC law. Therefore, insurance companies develop guidelines that help them determine if you qualify for their policy.  These guidelines may vary from company to company.

Yes. If a company determines that an increase is necessary, the change is usually done at the renewal with notification.

Homeowners policies do not cover flood or rising water damage. Some mobile home policies do include flood coverage. Flood insurance can be purchased through the National Flood Insurance Program.  Contact your agent to assist you with the purchase.

The insurance company should acknowledge receipt of your claim within 30 days. There is no specific time limit in which the company must settle your claim since each claim is different and the length of time to settle may vary.

Unless you have extra coverage with your homeowners policy, food lost in a power outage/disaster is probably not covered. You may be able to purchase an endorsement to cover food loss. Check with your agent.

Generally, if a tree falls on your home or other structure, your own homeowners policy would cover the damage.

Only if you are negligent, causing the injuries.  If you are not negligent, then coverage is available under the medical payments to others coverage provision in the policy. This would cover only incurred medical expenses up to a limited dollar amount. It would not cover payment for pain and suffering, loss time, etc.

No.  Your auto insurance would cover this kind of damage, if you carrry Other Than Collision (comprehensive) coverage.

Underwriting criteria of an insurance company could mean your homeowners policy excludes damage for windstorm or hail. Always remember to review your policy with your agent or insurance company to make sure you are properly covered. It is important to read your policy to understand how this coverage applies.

You may disregard the replacement cost loss settlement provisions and make a claim under your policy for loss or damage to buildings on an actual cash value basis.  You may then make a claim within 180 days after the loss for any additional reimbursement according to the Loss Settlement Provisions in your homeowner policy.