Homeowners insurance provides financial protection against disasters. A standard policy insures the home itself and the possessions within the home.

Homeowners insurance is a package policy. This package covers both damage to your property and your liability or legal responsibility for any injuries and property damage you or members of your family cause to other people. This coverage even includes damage caused by household pets.

Damage caused by most disasters is covered but there are exceptions. The most significant are damages caused by floods, earthquakes and poor maintenance. You must buy two separate policies for flood and earthquake coverage. Maintenance-related problems are the homeowners’ responsibility.


It is really all about protecting yourself financially if something unexpected happens to your home or possessions. That’s important because chances are your home is likely one of your largest investments.

  • If fire or a natural disaster destroys your home, you will need money to repair or replace it.
  • If a guest in your home is injured, liability protection and medical coverage help pay expenses.
  • If you are a victim of theft and vandalism, liability protection can reimburse you for your loss or pay for repairs.
  • If you are still paying for your home, your lender will require insurance.

It is important to know that homeowners insurance is meant to cover unexpected damage, not routine maintenance. Ask your agent to talk about what is covered and be sure to read your policy so you know exactly what’s included and what is not.

Here are few things to discuss with your agent that will influence your decisions:

  • How much will it cost to rebuild my house and replace my belongings if they are damaged or destroyed? Ask your agent to talk you through your home’s features and the things you own so you can make an informed decision about coverage.
  • Does the insurance company have a good reputation for customer service? Is it known for paying claims fairly and promptly?
  • What discounts are available? Ask about multiple policy, security system and fire resistance discounts.
  • What is the process for filing and settling a claim? Ask whom to call and what happens after you file a claim.
  • The Declarations Page: indicates the policy basics (i.e., insured’s name, property address, coverage and deductible limits, policy term and annual premium).
  • The Policy Booklet: contains specific details of coverages and exclusions.
  • Endorsements: if any, indicate any changes to the policy made during the policy term.

The standard HO3 Homeowner’s policy is the most commonly sold policy.  Usual and customary exclusions to the same include wear and tear, termite damage, rotting, septic tank collapse and the perils of war and earthquake, to name a few.

In addition, there are also specific policy limits you need to be aware of with respect to certain personal property items, and AVP Insurance will help you to determine your limits.

In addition to special coverage for jewelry, silverware and furs, you may also purchase specific coverage for possessions such as stamp or coin collections, fine art, camera equipment, collectibles, watercraft and musical instruments, to name a few. Current appraisals for the same are usually a standard requirement.