Jane Dotson
AAA Home Insurance provides protection for your home, personal property, liability, and more. It covers replacement costs for personal goods and living expenses if your home becomes uninhabitable. Hazard insurance, also known as dwelling coverage, is included in a homeowner's insurance policy and protects the physical structure of your home from damage caused by fires, hailstorms, lightning, smoke, vandalism, or frozen pipes. Homeowners insurance is not legally required, but your mortgage lender may ask for proof of insurance and expect you to maintain it for the duration of your loan. AAA offers home insurance in several states, including Arizona, California, Montana, Nevada, Utah, and Wyoming, with varying coverage options and rates.
| Characteristics | Values |
|---|---|
| Protection against | Damage, theft, lawsuits for injuries on the property |
| Coverage | Dwelling and other structures, personal property, liability, underground service lines, essential household systems |
| Add-ons | Earthquakes, floods, umbrella coverage |
| Cost | $1,048 in SoCal, $1,163 in NorCal |
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What You'll Learn
Home and personal property protection
Homeowners insurance is not a legal requirement, but your mortgage lender might ask for it. Lenders will likely want to see proof of insurance when you close on your home and will expect you to keep your home insured for the life of your loan.
AAA Home Insurance protects your home, personal property, and liability. It can also help pay to rebuild or repair your home or other structures on your property if they are damaged by a covered peril. This includes damage from fires, hailstorms, lightning, smoke, vandalism, or frozen pipes. It is important to note that hazard insurance, which covers these perils, is part of a homeowners insurance policy but is not the same as homeowners insurance. As a general rule, you should purchase enough hazard insurance to cover the cost of rebuilding your home.
AAA Home Insurance also covers personal belongings, including replacement costs for personal goods. This means that if your home becomes uninhabitable, you will be covered for living expenses. You can also purchase optional add-ons to cover big-ticket items, earthquakes, and more.
In addition to the above, AAA offers other benefits to homeowners. For example, you can earn cash back or a renewal credit of 3%, up to $50, for remaining claim-free every policy term. You are also covered for loss or damage to exterior underground service lines, such as water, sewer, or power. Finally, AAA has your back when essential household systems like central air conditioning, furnaces, or water heaters break down.
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Liability coverage
Typically, liability coverage limits for homeowners insurance start at $100,000. However, this may not be sufficient if you have substantial assets that could be at risk in costly litigation. In such cases, you have the option to increase your coverage limit to ensure adequate protection. This additional coverage can be purchased as an add-on to your existing policy, providing extra liability coverage above and beyond your standard policy limits.
It is worth noting that homeowners insurance does have some exclusions. For example, standard policies typically do not cover flood damage, so additional flood insurance may be necessary, especially if you reside in an area prone to flooding. Additionally, ordinance law, which involves government-mandated demolition, renovation, or repair to comply with ordinance laws, is generally excluded from coverage.
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Underground service line damage
AAA offers an optional coverage plan called Buried Utility Line Coverage, which provides protection for damage to underground service lines, including leaks, breaks, and ruptures caused by mechanical breakdowns, artificially generated electrical currents, wear and tear, hidden decay, corrosion, ground freeze, and root invasion. This coverage plan can help homeowners avoid the high costs of repairing or replacing underground service lines, which can run anywhere from $3,000 to $25,000 for a full sewer line replacement.
The Ultimate Plan offered by AAA also includes coverage for loss or damage to exterior underground service lines, such as water, sewer, or power lines. This plan provides additional benefits, such as claim forgiveness and the opportunity to earn cash back or a renewal credit for remaining claim-free.
Service line coverage typically does not pay for damages resulting from underground wires or pipes that are not connected and ready for use. However, if your insurance provider does not offer service line insurance coverage, you may be able to purchase a "service plan" or warranty from your local utility company, which will cover the cost of repairs.
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Essential household system repairs
Homeowners insurance from AAA protects your home, personal property, liability, and more. It covers the replacement cost of personal goods and living expenses if your home becomes uninhabitable. It also covers damage to your home and belongings due to fire, hailstorms, lightning, smoke, vandalism, or frozen pipes.
Essential household systems repairs are covered by AAA homeowners insurance. This includes breakdowns of central air conditioning, furnaces, or water heaters. You are also covered for loss or damage to exterior underground service lines, such as water, sewer, or power lines.
It is important to note that AAA homeowners insurance does not cover everything. There are optional add-ons for additional coverage, such as earthquakes. You can also choose between two plans, with the Ultimate Plan offering benefits like claim forgiveness and cash back for remaining claim-free.
The cost of AAA homeowners insurance varies depending on your location. In California, for example, AAA NorCal and AAA SoCal offer different coverage options and rates. It is recommended to consult with a AAA Insurance Agent to customize your policy and maximize your savings.
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Earthquake, flood, and fire damage
Standard homeowners insurance does not cover damage from natural disasters such as earthquakes, floods, and landslides. You can, however, purchase earthquake insurance to cover damage to your home and belongings. This insurance can also pay for living expenses elsewhere while your home is being repaired. Earthquake insurance does not usually cover damage to your land, vehicles, or water damage from outside your home.
In California, the California Earthquake Authority (CEA) provides most earthquake insurance policies. To purchase a CEA earthquake policy, you must already have a residential property insurance policy in place. The CEA Homeowners Choice policy offers separate coverage options for dwellings and personal property, with different deductibles. If you own a condominium unit, your homeowner's association (HOA) may have insurance for common areas and the exterior structure of the building, but it may not cover earthquake damage. In this case, the CEA condo unit policies can provide up to $100,000 for your share of certain assessments if your association imposes an assessment for covered damage caused by an earthquake.
Homeowners insurance typically covers fire damage, even if the fire was caused by an earthquake. Therefore, earthquake insurance does not cover fire damage. If you have a mortgage, homeowners insurance is mandatory, but earthquake insurance is not required. However, if you have homeowners insurance in California, your insurance company must offer to sell you earthquake insurance.
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Frequently asked questions
Homeowners insurance from AAA protects your home, personal property, and liability. It also covers replacement costs for personal goods and living expenses if your house becomes uninhabitable.
Hazard insurance, also called dwelling coverage, is part of a homeowners insurance policy. It protects the physical structure of your home, including damage from fires, hailstorms, lightning, smoke, vandalism, or frozen pipes.
AAA homeowners insurance offers optional add-ons for coverage against earthquakes, floods, and more. You can also get coverage for loss or damage to exterior underground service lines, such as water, sewer, or power lines.
The cost of AAA homeowners insurance varies depending on your location and the value of your home. In California, for example, a policy costs $1,048 in SoCal or $1,163 in NorCal for $350,000 of coverage.
The cost of homeowners insurance can vary significantly between providers. AAA has had some of the biggest increases in home insurance rates in recent years, with a 93.8% increase over the last six years. However, it is still a popular choice due to its comprehensive coverage and competitive rates in certain states.
