Which type of home insurance do you need?

There are so many different types of home insurance out there.  It really all depends on what type of home you are living in.  Are you in an apartment, a condo, a home?  You might be thinking there is no difference in the type of insurance you get.  Its all the same right?  Its not and in this blog we will further explain why.

Apartment Insurance

When you choose to live in an apartment, you don’t own the building.  So you are not responsible for the fixing anything that may happen to your home.  Thats the easiest way to explain it.  So should insure your belongs?  Yes because lets say for example your building has a fire.  Its a total loss and all your belongs are lost in the damage  Insurance will pay to have the building rebuilt, but not your items.  See the owner of the building is only responsible to have coverage on the structure.  NOT YOUR PROPERTY!

What You Need to Know

Your renters policy covers your personal property against theft or damage subject to the limits and deductibles you select.  The coverage applies even when you are away from home.

For a small additional premium, you can choose to carry full value coverage on your personal property, which ensures that you will be paid the full replacement cost of items that are damaged or stolen without deduction for depreciation.

Protect Yourself and Your Guests

Your renters insurance policy also protects you and your family against certain bodily injury and property damage claims for which you are liable. Legal defense is also provided in the event you are sued after a covered loss, subject to the limits you have selected.

In addition, you can select medical payments coverage which will pay for medical expenses incurred by a visitor who is injured at your residence regardless of fault. Various limits are available. Let us help you find the right amount of coverage to suit your insurance needs.

Condo Insurance

So you have moved from your apartment and have now  bought a condo!  Bravo – so  you might be thinking this is the same insurance policy as your apartment.  But now you have a condo fee you pay once a month, so is that your insurance?  Well yes and no.  Your condo insurance will cover all your belongings just like in your previous apartment policy, but now its going to cover the inside structure as well.  For example you have water damage due to pipe bursting.  Your condo policy or also know as your HO-6 will cover that to help you fix and replace and damage.  The outside structure of your condo including your roof is covered under your home owners association.  A completely different policy.

What you need to know

Condo insurance (also referred to as an H0-6 policy) covers your condo unit where your condo association insurance stops. Your association typically insures the physical structure/building and other common areas.

Association by-laws vary, but condo owners are generally responsible for the interior of their unit, or from the drywall in. Things like your floors, walls, cabinets and fixtures that your association’s insurance likely doesn’t cover.

Getting a copy of those by-laws is a good idea so you can understand what your responsibilities are in the event of a claim. We can help you understand the fine print.

Condo insurance for Town-homes

It’s also important to understand that some town-homes are insured like condos, and therefore require an H0-6 policy.

If you live in a town-home, be sure that you have the correct type of insurance.

Farquhar and Black Insurance Agency is here to help you understand the differences between a homeowners policy and a condo policy.

Homeowners Insurance

Well welcome to the big leagues.  You’re an adult now and have bought your first home. Now you are financially responsible for every thing that lays on your property.  The yard, the fence, the roof, the outside and the inside.

What is covered by a homeowners insurance policy?

Homeowners insurance covers your house, any outlying structures (garages, sheds etc.), your personal property and the loss of use of your home.  When purchasing homeowners insurance, you want to make sure that your home is covered by a so-called special form.  This was previously known as an ‘all-risk’ policy.  No insurance policy covers everything, the special form covers any damage that occurs to your home unless it is specifically excluded.  On the other hand, your personal property is usually covered for named perils only.   This means that your policy will only cover the contents of your home if the damage that occurs is specifically listed – think, fire, theft, smoke damage, vandalism, riot and more.  The main difference between the two – under the special form, the burden of proof is on the insurance company to show why a loss is not covered; under a named perilsform the burden is on you to show why it is covered.  While the homeowners named perils form is very broad, it is worth it to askhow much more will special coverage cost.  The answer might surprise you.

The other major part of the homeowners policy is liability coverage.

A homeowners policy covers your personal liability exposures, to protect you from many situations that could lead to lawsuits from others. For instance, if someone slips and falls in your home, or is injured somewhere on your property, you can be held responsible. Liability coverage is there to protect you.  $100,000 of coverage comes standard with the homeowners policy, usually, it costs less than $30 to increase that to $500,000.

When you see an independent insurance agent like Farquhar and Black Insurance Agency, you have the chance to explore all your options for insurance and protect the things that are most important to you.

Little known facts about Homeowners Insurance

When you insure your home, there are many issues that many consumers aren’t aware of. We are here to make sure you avoid potential problem areas, including:

  • A standard Homeowners policy does not include coverage for flooding or earthquake.
  • A standard homeowner policy only covers jewelry up to set limitsand only if the loss results from one of the perils named on the policy.
  • Most policies will not cover sewer back-up unless you purchase a special endorsement—it’s not expensive, but you won’t get it if you don’t ask for it
  • Damages caused by surface water or water that flows below the surface of the ground aren’t usually covered
  • Many policies default to actual cash value, which means if you purchased a widescreen TV and home theater system for $1,000, and it’s now only worth $450, that’s all you’ll receive on the claim. Just like the dwelling limit mentioned above, replacement cost insurance pays out the total replacement value of your possessions, not their market value, in the event of a claim.


Combine your Home and Auto policies (and others) for even more savings.  If you ever question what type of policy you need, our experienced account managers are always available to talk to walk you through the process in to insure you have the best coverage for you all your needs.

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Are you ready to save time, aggravation, and money? The team at Farquhar & Black Insurance is here and ready to make the process as painless as possible. We look forward to meeting you!

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