Homeowners Insurance in New Hampshire

Also providing homeowners insurance to residents in Massachusetts, Maine, Rhode Island, & Vermont.

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What is homeowners insurance?

While few homeowners expect it to happen to them, house fires, home break-ins and other perils happen every day. When a covered disaster or incident occurs, New Hampshire residents will be glad they have homeowners insurance.

Homeowners insurance provides financial protection against many perils that could damage or destroy a house. Policies generally also cover the homeowner against lawsuits, and belongings against theft.

Who in New Hampshire should consider getting home insurance?

Home insurance is a protection that virtually every New Hampshire resident should consider if they own a house. Recovering from the financial costs of rebuilding might be impossible without coverage.

For the many residents who have taken out a mortgage to purchase their house, some level of insurance coverage for the physical structure is usually mandated by the lender’s loan agreement. The same is often true if taking out a home equity line of credit (HELOC) after paying off an initial mortgage.

Regardless of any lender-stipulated coverages, however, most homeowners would be well-advised to carry home insurance that has robust protections.

Even beyond any lender stipulation, home insurance is strongly encouraged due to the vital protections it provides.

What protections does a typical homeowners policy include?

A homeowners policy usually comprises several crucial coverages:

• Structural Coverage: This generally protects the physical house against damages caused by covered events. The nature of these events depends on the type of policy, whether they are explicitly listed (as in a named perils policy), or all risks are covered barring those expressly excluded (as in an open perils policy).
• Auxiliary Structures Coverage: This generally provides protection for other structures on the property that are not connected to the main house, such as a detached garage, shed or fence, among others. The specifics can vary with each policy.
• Personal Property Coverage: This generally protects personal belongings inside and around the house, such as electronics, clothing, furniture, grills, etc. Depending on the policy, this coverage might extend to items not physically present at the residence.
• Loss of Use Coverage: This generally protects against any additional living expenses incurred if the house becomes uninhabitable due to a covered event. Additional living expenses could include rent for a temporary living arrangement, and meal expenses until a new living situation is secured.
• Personal Liability Coverage: This generally protects against legal expenses in case someone sustains an injury on your property and chooses to sue. Defamation and other specific incidents are also frequently covered, and liability protections normally apply to all immediate family members residing at the insured residence.

Coverages and their terms can vary slightly from policy to policy. An insurance agent who specializes in homeowners policies can help residents check exactly what protections a specific policy covers.

What does the term dwelling replacement cost coverage imply?

There are different levels of dwelling coverage, with higher coverage levels typically corresponding to better protection if a house is completely destroyed. The main types of dwelling coverage include:

• Actual Cash Value Coverage: This typically covers a home up to its market value. It might suffice to pay off a mortgage and recover any equity, but it may not cover the full cost of rebuilding.
• Replacement Cost Coverage: This typically covers a home up to the estimated cost of rebuilding. It provides a higher chance of restoring your home to its pre-loss state, but prices could surge beyond this amount.

Guaranteed Replacement Cost Coverage: This typically provides coverage exceeding the replacement cost. The higher limit can help with reconstruction, even if there’s an unexpected increase in construction costs. Some insurers might call this extended replacement cost coverage, and it’s not offered by all insurance companies.

What do the common abbreviations used in homeowners policies mean?

Insurance professionals often use several abbreviations to denote different types of homeowners policies:

• HO-1: Basic protections for a single-family house.
• HO-2: More protections for a house.
• HO-3: Significantly better protections for a house.
• HO-5: Some of the best protections for a house.
• HO-7: Specialized coverage for mobile homes and manufactured houses.
• HO-8: Specialized coverage for older houses.

How can New Hampshire residents find homeowners insurance for their house?

If you’re a New Hampshire resident and need homeowners insurance, contact the independent insurance agents at Insurance24. We’ll make sure your house is well protected.