Example Insurance Co.

You pay Example Insurance $4,860 a year, and in return they help pay for sudden damage to your home and things, after you pay your share first.

Think of it like a team deal. Every year you pay your part (the premium). If something sudden breaks your house, you pay the first chunk of the repair yourself (the deductible), and the insurance company pays the rest, up to a maximum (the limit). Some kinds of damage are left out completely; those are called exclusions.

This policy helps pay to fix or rebuild your house if something bad and sudden happens to it, like a fire or a storm. It also helps replace your stuff and pays if someone gets hurt at your home and blames you. For most problems you pay the first $2,500. For a hurricane you pay the first $7,000. Floods are not covered at all.

The score is in the middle-high range mostly because of the $7,000 hurricane deductible, the roof being paid by its age, and no flood coverage. The amounts for your stuff and for injuries to other people are in a normal range.

• Partly covered

  A hurricane blows shingles off and rain gets in

  Covered, but you pay the hurricane deductible, and the roof itself is paid by its age.

  What you might pay: Repairs cost $30,000. You pay $7,000; insurance pays up to $23,000, less depreciation on an older roof.

  Based on: Coverage A, hurricane deductible, Roof Surfacing Payment Schedule

• Not covered

  Storm surge floods the first floor

  Flood and storm surge are excluded. This policy would not pay.

  What you might pay: Damage costs $60,000. Without a flood policy, you pay all $60,000.

  Based on: Flood exclusion

• Covered

  A washing machine hose bursts

  Sudden water damage is covered after the regular deductible.

  What you might pay: Cleanup and repairs cost $12,000. You pay $2,500, insurance pays $9,500.

  Based on: Coverage A, all other perils deductible

• Not covered

  A slow leak under the sink rots the cabinet over months

  Leaks that went on for 14 days or more are excluded.

  What you might pay: Repairs cost $5,000. You pay all $5,000.

  Based on: Continuous or repeated seepage exclusion

• Partly covered

  Mold spreads after a covered pipe burst

  Mold removal is covered only up to $10,000.

  What you might pay: Mold removal costs $18,000. Insurance pays up to $10,000; you pay the other $8,000 plus your deductible.

  Based on: Limited Fungi, Mold and Bacteria endorsement

• Covered

  Someone slips by your pool and sues

  Liability coverage helps pay their medical bills and your legal defense.

  What you might pay: A $120,000 claim is within the $300,000 limit. No deductible applies.

  Based on: Coverage E - Personal Liability

• high

  Hurricane deductible is $7,000

  If a hurricane damages the house, the first $7,000 comes out of your pocket. That's almost 3 times the normal deductible.

  Ask your agent: What would it cost each year to lower my hurricane deductible to a flat amount?

• medium

  No flood coverage

  Rising water and storm surge aren't covered by this policy.

  Ask your agent: Do I have, or need, a separate flood policy for this address, and what would it cost?

• Coverage A - Dwelling

  $350,000 · deductible $2,500 (hurricane: $7,000)

  Pays to fix or rebuild the house itself: walls, roof, floors, built-in cabinets.

  Example: A kitchen fire causes $40,000 of damage. You pay $2,500, insurance pays $37,500.

• Coverage B - Other Structures

  $7,000 · deductible $2,500

  Pays for things on your land that aren't attached to the house, like a fence or shed.

  Example: A tree crushes a $9,000 fence. Insurance pays at most $7,000 minus your $2,500, so $4,500. You pay $4,500.

• Coverage C - Personal Property

  $175,000 · deductible $2,500

  Pays for your stuff: furniture, clothes, TVs, toys. This policy pays what it costs to buy them new.

  Example: A burglar takes $6,000 of electronics. You pay $2,500, insurance pays $3,500.

• Coverage D - Loss of Use

  $35,000

  If you can't live at home while it's being fixed, this helps pay for a hotel and extra costs.

  Example: After a covered fire you stay in a rental for 3 months at $3,000 a month. This pays up to $35,000 in total.

• Coverage E - Personal Liability

  $300,000

  If someone gets hurt at your home or you accidentally damage someone else's things, this helps pay.

  Example: A guest slips on your wet pool deck and needs surgery. This helps pay their bills and a lawyer, up to $300,000.

• Ordinance or Law

  25% of Coverage A ($87,500)

  When the city makes you rebuild to today's building rules, which costs more, this helps pay the extra.

  Example: Rebuilding to current code adds $20,000 to a repair. This covers it, up to $87,500.

• All other perils

  $2,500

  The part you pay yourself for most kinds of damage, like fire, theft or a burst pipe.

  Damage costs $10,000 → you pay $2,500, insurance pays $7,500.

• Hurricane

  $7,000

  2% of Coverage A

  A bigger share you pay when the damage comes from a hurricane. It's 2% of your $350,000 house coverage.

  Hurricane damage costs $25,000 → you pay $7,000, insurance pays $18,000.

Sudden water damage, like a pipe bursting, is covered after you pay $2,500. Slow leaks that went on for 14 days or more are not. Mold cleanup is capped at $10,000.

Mold cleanup limit

$10,000

Good to know

Insurance helps pay to open the wall and reach the leak, but not to replace the broken pipe itself.

• Flood

  Water that comes from outside and rises up, like storm surge or a flooded street, is not covered. That needs a separate flood policy.

  Policy wording: “We do not insure for loss caused by flood, surface water, waves, including tidal wave and storm surge”

• Slow leaks over 14 days

  If water leaked a little at a time for 14 days or more, like under a sink, it isn't covered, even if you couldn't see it.

  Policy wording: “continuous or repeated seepage or leakage of water ... over a period of 14 days or more”

• Roof Surfacing Payment Schedule

  For the roof's outer layer, insurance pays based on how old it is, not what a new roof costs. An older roof gets less money.

• Limited Fungi, Mold and Bacteria

  Mold cleanup is capped at $10,000 in total, even if the mold problem is much bigger.

1. 1

   Tell the insurance company quickly

   Call or file online as soon as you can after damage happens.

   Deadline: Hurricane claims must be reported within 1 year of the storm

2. 2

   Stop the damage from getting worse

   Do reasonable things like turning off the water or covering a hole in the roof, and keep the receipts.

3. 3

   Make a list and take photos

   Write down everything damaged, with photos, and keep damaged items until the adjuster sees them.

Premium

The price you pay for the insurance.

In your policy: $4,860 per year

Deductible

The part of a repair bill you pay yourself before insurance pays the rest.

In your policy: $2,500 for most damage; $7,000 for hurricanes

Limit

The most the insurance company will pay for one type of coverage.

In your policy: $350,000 for the house

Exclusion

Something the policy says it will not pay for at all.

In your policy: Flood is excluded

Endorsement

An add-on page that changes the normal rules of the policy.

In your policy: Two: roof payments and mold cap

Actual cash value

What something is worth today after wear and tear, not what a brand-new one costs.

In your policy: Used for the roof's outer layer