By B&B Luxury Properties
A homeowners policy is one of the first documents new owners sign and one of the last they read closely. At B&B Luxury Properties, we want New Hope clients to understand the basics before a claim ever happens. The information below comes from the Pennsylvania Insurance Department, New Hope Borough, and related sources, and we are not insurance or legal professionals.
Here are five areas to review with a licensed agent.
Key Takeaways
- Core coverages: The Pennsylvania Insurance Department lists dwelling, other structures, personal property, loss of use, liability, and medical payments coverage.
- Flood exclusion: The department says flood is a common exclusion, and an older department guide says flood damage is excluded from all homeowners forms.
- Local flood map: New Hope Borough says FEMA’s updated flood boundaries took effect on March 16, 2015.
- Lender rule: Pennsylvania law does not mandate homeowners insurance, though the department says most lenders require coverage of at least the mortgage amount.
Start With Dwelling and Other Structures Coverage
The Pennsylvania Insurance Department says dwelling coverage applies to the house and attached structures, including plumbing, wiring, heating, and permanently installed cooling. Other structures coverage applies to detached garages, sheds, fences, and guest houses.
Coverage Basics From the Department
- Main house: Covers the house and attached structures, plus permanently installed systems.
- Other structures: Covers detached garages, sheds, fences, and guest houses.
- Typical cap: An older department guide says other structures are usually capped at 10 percent of the dwelling limit.
That guide has no issue date, so ask your agent how your own policy sets limits. Owners of properties with a detached garage or guest house should ask how the cap applies.
Understand Personal Property and Loss of Use
Personal property coverage applies to belongings, including items taken off the premises, according to the Pennsylvania Insurance Department. Loss of use pays additional living expenses while a home cannot be lived in after a covered loss.
Property and Living-Expense Notes
- Personal property: An older department guide says the limit is usually 50 percent of the dwelling limit.
- Settlement type: The same guide says belongings are usually paid at actual cash value unless a replacement cost option is bought at extra cost.
- Extra costs: Loss of use pays additional living expenses, per the current department page.
The older guide lists different living-expense percentages depending on the policy form. Ask your agent which form your policy uses.
Review Liability and Medical Payments Protection
The department says liability coverage protects you, household relatives, and household residents under 21 if you are sued and found legally responsible. It extends to full-time students under 24, with exceptions.
Liability Details
- Medical payments: Covers medical bills for people hurt on your property or by your pets.
- Basic limit: An older department guide says basic liability is usually $100,000 per occurrence.
- Medical limit: The same guide says basic medical payments are usually $1,000 per person.
Those limits come from an undated guide, so confirm current amounts with your insurer. Ask your agent whether higher limits are offered.
Check Flood Coverage Using New Hope’s FEMA Map
The Pennsylvania Insurance Department lists flood as a common exclusion, and its older guide says flood damage is excluded from all homeowners forms. New Hope Borough says a FEMA project re-examined local flood zones, with the borough adopting the boundaries on January 20, 2015 and FEMA setting a March 16, 2015 effective date.
Flood Resources
- Borough contact: New Hope Borough Hall at 123 New Street lists the zoning officer at 215-862-3347, extension 155.
- Bucks County viewer: The borough points to the Bucks County Planning Commission Floodplain Viewer, which shows flood areas by parcel.
- Who can buy: The department’s older guide says flood insurance can be purchased for any insurable property, even outside a flood plain.
The borough’s page describes events from 2013 through 2015, so check current FEMA status before relying on it. FEMA FloodSmart at 800-427-4661 can answer insurance questions.
Match Limits to Rebuild Costs and Pennsylvania Rules
Pennsylvania law does not mandate homeowners insurance, though the department says most lenders require coverage of at least the mortgage amount. Replacement cost pays to rebuild with similar materials without depreciation, while actual cash value subtracts depreciation, according to the older guide.
Limit Checkpoints
- Eighty percent rule: The older guide says most companies expect coverage of at least 80 percent of replacement cost, and a shortfall can reduce a claim payment.
- Deductibles: The guide says a higher deductible lowers the premium.
- Backup option: The guide lists the PA FAIR Plan at 1-800-462-4972 for basic fire coverage.
Guide figures may be outdated, so verify details with the Pennsylvania Insurance Department. We recommend reviewing coverage with a licensed insurance professional before closing.
FAQs
What does homeowners insurance cover in Pennsylvania?
The Pennsylvania Insurance Department describes dwelling, other structures, personal property, loss of use, liability, and medical payments coverage. Flood and earthquake are common exclusions. Your policy’s wording controls, so read it with a licensed agent.
Is homeowners insurance required in Pennsylvania?
The department says state law does not mandate it, though most lenders require it. The usual lender requirement is coverage of at least the mortgage amount. Check with your lender for its exact rules.
Does homeowners insurance cover flooding?
The department lists flood as a common exclusion, so flooding typically calls for a separate flood policy. FEMA FloodSmart at 800-427-4661 can answer questions. New Hope Borough’s page also points to a county floodplain viewer.
Contact Us at B&B Luxury Properties
If you are planning a New Hope home purchase and want help knowing what to ask, contact B&B Luxury Properties to start the conversation.
