Best Homeowners Insurance Agencies in Rochester Hills

Frequently Asked Questions

• Introduction

  Homeowners' insurance is a type of property insurance used by private property owners to protect their home and property from a range of risks and liabilities. It is also called home insurance.
  

  
  

  All homeowners' insurance policies cover the primary home on a property, meaning that most damage from weather, accidents, vandalism, and other events will be at least partially paid for by the insurance company. Many policies also include coverage for other structures, personal property, and some premises liability.

  
  

  It is not required by law that a homeowner purchases insurance for their property. However, if you have a mortgage, the lender will usually make purchasing a homeowners' policy a mandatory part of the loan process. Since the mortgage lender is essentially selling you the home, they require you to protect the investment.
  

• What is the liability coverage on a homeowners' insurance policy in Rochester Hills?

  In Rochester Hills, the liability portion of homeowners' insurance policies protects policyholders from emergencies and injuries caused by an accident and a claim filed against them. The liability coverage pays for property damage caused by an individual, injuries to visitors on the premises, and medical costs resulting from dog bites or attacks. It also covers any damage ordered by the Rochester Hills court to pay; however, it is limited to $300,000 for property damage and injuries and is not subject to deductible.

• Do homeowners' insurance policies cover identity theft in Rochester Hills?

  Identity theft is not covered by the average homeowners' insurance policy in Rochester Hills; however, policyholders can obtain identity theft coverage by adding a rider to their current homeowners' insurance policy. By adding an insurance rider, you can get accidental loss coverage, lower or no deductibles, and a higher coverage limit. Individuals in Rochester Hills, on the other hand, can purchase a separate policy, such as the Michigan Civil Service Commission's IDShield Identity Theft plan, which covers malware protection, identity restoration, and password management.

• What are the common exclusions in homeowners' insurance policies in Rochester Hills?

  Water damage from sewer backups, animal injuries, and dry rot or vermin are typically not covered by Rochester Hills homeowners insurance. Weather-related disasters, such as mudslides and floods, are also not covered by the policy. In addition, homeowners' insurance policies in Rochester Hills do not cover losses to home-based businesses, intentional losses, or losses caused by earthquakes or negligence.

• Who is not qualified to apply for homeowners' insurance policies in Rochester Hills?

  Residents of Rochester Hills who want to insure their home that is used for illegal purposes and has a physical condition that makes a significant loss likely are ineligible for a homeowners' insurance policy. Policyholders who have been convicted of arson in the last five years or who have refused to purchase the required minimum policy coverage are not eligible for the plan. Applicants who have been unable to find an insurer may apply to the Michigan Basic Property Insurance Association.

• How much is the minimum amount for insurers in Rochester Hills to deny a homeowners' insurance plan?

  Insurance companies in Rochester Hills are unable to cover the costs of repairing, replacing, or rebuilding a damaged home worth no more than $35,000 to its original condition using the same materials and quality. On the other hand, insurers do not finance the replacement or rebuilding expenses of a property worth less than $15,000 to a comparable condition using modern materials, such as drywall instead of plaster walls. However, agencies that refuse to provide a replacement cost policy must instead provide a repair cost policy.

• What determines the price of homeowners insurance premium?

  The premium, or monthly cost, of your homeowners' insurance policy depends on several factors, including the value of your home and amount of coverage you choose. Your credit history and whether the property is in a higher risk area also play a role.