Homeowners & Renters

Homeowners insurance helps protect your home and personal belongings from covered risks such as fire, theft, and storm damage. It also provides liability coverage in case someone is injured on your property. Standard homeowners insurance policies typically include the following:

• Dwelling Coverage: Protects the physical structure of your home, including walls, roof, and attached structures, from covered perils like fire, wind, and hail.

• Other Structures Coverage: Covers detached structures on your property, such as garages, sheds, and fences.

• Personal Property Coverage: Pays to repair or replace belongings such as furniture, clothing, and electronics if they are damaged or stolen.

• Liability Protection: Provides financial protection if someone is injured on your property or if you accidentally cause damage to someone else’s property.

• Additional Living Expenses (ALE): Covers the cost of temporary housing and other expenses if your home becomes uninhabitable due to a covered event.

Policies may have limits and exclusions, so it’s important to review coverage details carefully.

Renters insurance is designed to protect tenants from financial loss due to theft, fire, or other covered risks. While a landlord's insurance covers the building itself, it does not cover a tenant's personal property. Renters insurance typically includes:

• Personal Property Coverage: Protects belongings like clothing, furniture, and electronics against covered perils.

• Liability Coverage: Provides financial protection if someone is injured in your rental unit and you are found responsible.

• Loss of Use (Additional Living Expenses): Pays for temporary housing and extra expenses if your rental unit is damaged and becomes unlivable.

Renters insurance is usually affordable and offers peace of mind, especially in cases of unexpected disasters.

Standard homeowners and renters insurance policies do not cover every type of damage. Common exclusions include:

• Flood Damage: Most policies do not cover floods. Homeowners can purchase separate flood insurance through the National Flood Insurance Program (NFIP). Renters may also need separate coverage for flood damage to their belongings.

• High-Value Items: Items like jewelry, artwork, and collectibles may have limited coverage under a standard policy. Additional endorsements (riders) can increase protection.

• Wear and Tear: Normal aging, maintenance issues, and gradual deterioration of a home or belongings are not covered.

• Business-Related Losses: If you run a business from home, standard policies may not cover related losses. A home business endorsement or separate business insurance may be needed.

Before purchasing a policy, it’s essential to review coverage details, ask about optional add-ons, and understand any limitations.

Mobile Home Insurance

Mobile homes are insured differently from traditional houses due to their unique construction and potential risks. A mobile home insurance policy typically includes:

• Dwelling Coverage: Protects the structure of the mobile home from covered perils like fire, wind, and hail.

• Personal Property Coverage: Covers belongings such as furniture, electronics, and clothing.

• Liability Protection: Provides financial protection if someone is injured on your property.

• Additional Living Expenses (ALE): Pays for temporary housing if your mobile home is uninhabitable due to a covered event.

Important Considerations for Mobile Homes:

• Many standard policies exclude wind and hail damage in high-risk areas, so check for additional coverage.

• If your mobile home is not permanently anchored, it may be classified as a vehicle rather than a dwelling, requiring different insurance.

Condo Insurance

Condo owners need a special type of homeowners insurance known as an HO-6 policy, which works alongside the condo association’s master policy. HO-6 policies typically cover:

• Interior Unit Coverage: Protects fixtures, walls, and flooring inside your unit that the condo association’s insurance may not cover.

• Personal Property Coverage: Covers belongings like furniture, appliances, and clothing.

• Liability Protection: Helps pay for legal or medical expenses if someone is injured inside your condo.

• Loss of Use Coverage: Pays for temporary living expenses if your unit is uninhabitable due to a covered event.

• Loss Assessment Coverage: Helps cover your share of costs if the condo association charges unit owners for damage to shared property (such as the roof or lobby).

Important Considerations for Condo Owners

• Review the condo association’s master policy to determine whether it covers only the exterior structure (bare walls coverage) or includes some interior elements.

• Some condo associations require unit owners to carry a minimum amount of coverage.

Selecting the right homeowners or renters insurance policy depends on your needs, budget, and risk factors. Here are key steps to finding the best coverage:

• Assess Your Coverage Needs: Homeowners should estimate the cost to rebuild their home, while renters should take inventory of their personal belongings.

• Understand Policy Limits & Deductibles: Policies have limits on how much they will pay for damages. A higher deductible usually lowers your premium but means more out-of-pocket costs if you file a claim.

• Compare Quotes from Multiple Insurers: Prices and coverage options vary between companies, so it’s wise to shop around. The North Dakota Insurance Department can provide guidance on licensed insurers.

• Check for Additional Coverage Options: Depending on your situation, you may need flood insurance, an endorsement for high-value items, or extra liability coverage.

• Read the Fine Print: Make sure you understand exclusions, claim filing procedures, and coverage details before purchasing a policy.

Insurance policies can be complex, so it’s important to understand key terms and coverage details before you need to file a claim.

• Actual Cash Value (ACV) vs. Replacement Cost: ACV policies factor in depreciation when reimbursing for lost or damaged items, while replacement cost policies pay for new items at today’s prices.

• Endorsements & Riders: These are optional add-ons that extend coverage, such as increasing the limit for jewelry or adding protection for home-based businesses.

• Exclusions & Limitations: Policies often exclude certain types of damage (e.g., floods, earthquakes) or have coverage limits on specific items.

• Renewal & Policy Updates: Review your policy annually to ensure coverage keeps up with changes in home value, renovations, or new possessions.

Several factors go into determining the premiums you pay for homeowners or renters insurance. Each company is different, so make sure to shop around for coverage. Factors include:

• The amount of coverage you buy.
• The type of coverage selected, named peril versus all peril.
• Replacement cost versus actual cash value (ACV).
• The size of your deductible.
• Your claims history.
• The location of your residence - how close is it to a responding fire department?
• The condition of your residence - are the premises kept up?
• The type of dwelling-frame construction, masonry, or brick construction.
• Your credit history. Consumers with a poor credit history (financial stability score) might be charged a higher premium than consumers with a good credit history.

If you have questions, contact your insurance agent or the North Dakota Insurance Department for assistance.

If you experience damage or loss, follow these steps to ensure a smooth claims process:

• Document the Damage: Take photos and videos of the damage immediately. Keep receipts for any emergency repairs.

• Contact Your Insurance Company: Report the claim as soon as possible and provide necessary details.

• Work with an Adjuster: The insurer will send an adjuster to assess the damage and determine the payout.

• Review the Settlement Offer: Ensure the payout aligns with your policy’s coverage. If you disagree, ask for a review or second opinion.

• Appeal or File a Complaint if Needed: If you feel your claim was unfairly denied or undervalued, you can file a complaint with the North Dakota Insurance Department for assistance.

There are several ways to lower your insurance costs without sacrificing important coverage:

• Bundle Policies: Many insurers offer discounts when you combine homeowners/renters insurance with auto or other policies.

• Improve Home Security: Installing smoke detectors, burglar alarms, and deadbolts can reduce your premium.

• Increase Your Deductible: Opting for a higher deductible can lower your monthly premium, but be sure you can afford it in case of a claim.

• Ask About Discounts: Many insurers offer savings for being claim-free, having a good credit score, or making home improvements.

• Compare Rates Annually: Insurance rates change, so review your policy and shop around each year to ensure you're getting the best deal.

By understanding your coverage options and ways to save, you can ensure you’re getting the right protection at the best value. While cost is an important factor, you should always shop for coverage. Low-cost policies may be enticing, but they may not cover everything you need when the unexpected happens. 

If you can’t stay in your home after a covered disaster, many homeowners policies will pay for additional living expenses (ALE). Those are temporary housing costs if you move into a hotel or apartment while your home is being repaired or rebuilt. 

How does ALE work?

• If your home is unlivable, ALE will help pay for living expenses that are beyond your normal living expenses.
• Your insurance policy will not pay for all of your living expenses.
• It will only pay the difference between your previous living expenses and your new temporary expenses.
• So, your policy may pay for your hotel or rental stay. But you will still be responsible for your mortgage payment. 

ALE typically covers: 

• Hotel bills.
• Reasonable restaurant meals (if you’re staying in a hotel room with no kitchen).
• Other living costs above and beyond your normal housing expenses while you can’t live in your home because of damage.

Keep all receipts for any additional costs you have. The insurance company will need the receipts to reimburse you.  

Does ALE have limits?

Some policies have a dollar limit; some may also have a time limitation. These limits are separate from any coverage you receive to rebuild or repair your home and replace your belongings. Ask your insurance agent, company, or adjuster what your policy covers and about any time or dollar limits that apply.