Homeowners Insurance: Why Your Auto Is Listed Here

Auto-Owners Insurance is a company that offers homeowners insurance, including policies for renters, rental dwellings, mobile homes, and more. They also offer a range of vehicle policies for cars, motorcycles, boats, and ATVs, as well as life and business insurance. The company's policies are available exclusively through local, independent agents and cover more than half of the country. Auto-Owners Insurance provides in-person, phone, and online access to policy and claim information, as well as excellent customer service and competitive rates.

Who needs to be listed on the insurance policy?

When it comes to homeowners insurance, the primary homeowner must be listed as the policyholder. This ensures that the person with the most significant financial interest in the property is covered. Typically, the home insurance policy should match the name(s) on the home deed.

In the case of joint ownership, all co-owners should be listed on the policy. This includes spouses or partners who share ownership of the property. Listing all co-owners ensures comprehensive coverage and prevents potential coverage gaps.

Family members living in the home, such as adult children or elderly parents, may also need to be included as additional insureds. This is because the insurance coverage often extends to household members, defined as immediate or extended family members living in the same home as the policyholder.

It is important to note that not everyone needs to be listed to be covered. If one household member is listed as the named insured, anyone related to that person through marriage, adoption, or blood is typically covered under the same policy.

For unmarried cohabitating partners, there are options like an "Other Members of the Household" endorsement or an "Additional Insured" endorsement to ensure they are covered under the homeowners insurance policy.

Additionally, individuals with a financial interest in the property, such as a co-signer on the mortgage, should be listed as additional insureds. This ensures that all parties with a financial stake are adequately protected.

What does homeowners insurance cover?

Homeowners insurance provides financial protection against damage to your house and your belongings, as well as liability protection if someone is injured on your property. It also covers additional living expenses if your home is damaged and you need to live elsewhere temporarily.

There are four standard areas covered by a regular homeowner's policy:

• Your home's physical structure: This includes detached structures such as a garage, tool shed, or gazebo, though this varies by policy. A standard policy will not pay for damage caused by a flood, earthquake, or routine wear and tear.
• Your personal belongings inside the home: This includes items stored off-premises, though some companies limit the amount to 10% of the amount of insurance you have for your possessions. Expensive items like jewelry, art, and collectibles are covered, but there are usually dollar limits if they are stolen.
• Liability protection: This covers legal protection for you in the case of lawsuits for bodily injury or property damage that you or your family members cause to other people, including damage caused by your pets. Liability protection also provides no-fault medical coverage for someone injured in your home, but it does not pay the medical bills for your family or pets.
• Additional living expenses: This covers any additional costs of living away from home if you cannot live there due to damage from an insured disaster, such as hotel bills, restaurant meals, and other costs.

Homeowners insurance policies vary, so it is important to understand the scope and limitations of your coverage. For example, standard policies don't cover flooding, earthquakes, or pest and mold damage. You can pay extra to add coverage for these risks.

Additional coverages

Homeowners insurance policies typically include a range of additional coverages that provide financial protection for your property, belongings, and liability. Here are some of the key additional coverages offered by homeowners insurance:

Dwelling Coverage:

Dwelling coverage is the cornerstone of your homeowners insurance policy. It provides financial protection for repairs, replacements, or rebuilding of your home's structure after a covered peril. This includes damage caused by fire, theft, vandalism, or weather events such as lightning, wind, or hail. It also covers damage from external forces like falling trees or branches.

Personal Belongings Coverage:

Homeowners insurance covers your personal belongings within the home, including heating and cooling systems, kitchen appliances, furniture, clothing, and other possessions. If you have high-value items like jewelry, artwork, or collectibles, consider additional coverage as standard policies may have sub-limits for these items.

Detached Structures Coverage:

This coverage includes outbuildings on your property, such as garages, barns, or sheds, as well as outdoor features like grills, fireplaces, swing sets, walls, or fences. Recreational equipment like swimming pools or trampolines may also be covered but may require additional liability coverage due to their higher risk nature.

Additional Living Expenses Coverage:

If you need to find temporary lodging while your home is being rebuilt or repaired after a covered loss, this coverage will reimburse you for expenses like restaurant meals, parking fees, and hotel stays. Policies typically have pre-set coverage limits and duration, so it's important to carefully review the terms.

Personal Liability Protection:

Personal liability coverage provides financial protection if someone is injured on your property. It covers medical expenses and legal fees if you are sued due to an injury on your premises. This coverage also extends to situations where you or a family member cause injury to an individual or damage someone else's property.

Medical Payments Coverage:

Medical payments coverage is included in homeowners insurance policies and applies to individuals who are accidentally injured on your property. It covers reasonable and necessary treatment costs and copays within a specified time frame after the accident, typically one year. You can expand this coverage if needed, as policies usually have pre-set limits.

Optional Endorsements:

You can also add optional endorsements to your homeowners insurance policy for extra coverage. These endorsements typically increase coverage limits, extend protection to items not covered in the base policy, or add coverage for specific risks. Common endorsements include scheduled personal property, sewer and water backup protection, earthquake coverage, windstorm coverage, flood insurance, identity theft protection, and law or ordinance coverage for bringing your home up to code.

Discounts

Multi-Policy Discount

If you purchase multiple insurance policies from the same provider, you may be eligible for a multi-policy or bundling discount. This could include bundling your auto insurance with your home insurance, or with another type of insurance such as renters' or life insurance. Bundling your policies can not only save you money but also provide the convenience of managing all your policies in one place.

Life Multi-Policy Discount

You may be eligible for lower premiums when holding a qualifying life insurance policy alongside your homeowners insurance.

Advance Quote Discount

If you get a quote before your coverage needs to begin, you may be eligible for a lower rate as a new policyholder.

Green Discount

Enrolling in paperless billing and paying your premiums electronically may qualify you for a green discount.

Automatic Backup Generator Discount

If your home has a qualifying backup generator for use during a power outage, you may get a cheaper premium.

Paid-in-Full Discount

You can often receive a discount by paying your entire premium upfront instead of making monthly installment payments.

Favorable Loss History Discount

If you have a history of being claim-free for several years, you may pay less.

Mortgage-Free Discount

If you own your home outright and don't carry a mortgage or line of credit, you could qualify for lower premiums.

Payment History Discount

Maintaining a good payment history can lead to savings. For example, consistently making on-time payments for 36 months may result in a discount.

Protective Devices Discount

Equipping your home with safety devices like smoke detectors and fire extinguishers may lead to lower insurance premiums.

Water Shut-Off System Discount

If your home has a system that automatically turns off the water supply when a leak is detected, you may be eligible for a discount.

Hurricane and Wind Mitigation Discounts

If your property includes structural elements that safeguard against wind damage from severe storms, you may be eligible for lower rates.

Good Driver Discount

If you have a clean driving record, free from accidents, speeding tickets, and other violations, you may be eligible for a good driver discount. This discount is often defined as going a specified period, such as three years or more, without being in an accident or receiving any moving violations.

Student Discount

Students enrolled in high school or college who maintain good grades (typically a B average or better) may be able to save with a student discount.

Anti-Theft Device Discount

Having security devices such as an alarm or a tracking device installed in your vehicle may help you save on car insurance.

Paperless Discount

Opting for electronic policy documents instead of paper ones can often lead to a small discount.

Military Discount

Some insurance companies offer discounts to current or former members of the military.

Automatic Payments Discount

Setting up automatic premium payments, usually through electronic funds transfer or a debit/credit card, may result in a discount.

Loyalty Discount

Renewing your policy and staying with the same insurance company can sometimes lead to lower rates as a reward for your continued business.

Low-Mileage Discount

If you are a low-mileage driver, your insurance company may offer a discount. This is usually determined by tracking your driving habits through an app or other device.

When to update your insurance

It is important to update your insurance when your living situation changes. This could be a change in marital status, a new address, or a new driver in the household. You should also update your insurance when your personal details change, such as your name, gender, or marital status. Changes in your driving habits, such as a new commute or using your vehicle for business or ridesharing, should also prompt an update to your insurance. In addition, you should update your insurance when you purchase or sell a vehicle, when your payment information changes, or when your discount eligibility changes.

When Your Address Changes

It is important to notify your insurance company when you move, even if it is just up the street. Your address is a major factor in determining your insurance rates. Neighbourhood crime rates, accident frequency in the area, and local traffic patterns can all impact insurance premiums. Failing to update your address can result in claims being denied or your policy being cancelled.

When Your Personal Details Change

Insurers need to have your legal name on file, so be sure to notify them of any name changes due to marriage, divorce, or gender transition. Letting your insurer know about a gender change may also affect your premium.

When Your Driving Habits Change

If your regular commute changes, or if you start using your vehicle for business or ridesharing, you should contact your insurance company. Spending more time on the road can change the risks you face and may affect your insurance rate. On the other hand, if you start working from home or retire and drive less, you may benefit from usage-based insurance, which offers lower premiums for lower mileage.

When New Drivers Are Added to Your Household

Any new drivers in your household, such as a newly licensed teen or ageing parents, should be added to your policy. This ensures they are protected if they drive your car. It is always better to disclose all drivers, even if they have their own policy.

When You Purchase or Sell a Vehicle

Each vehicle presents a different set of risks that insurance companies need to evaluate, so be sure to reach out to your insurance company when you purchase a new vehicle. Don't forget to remove vehicles from your policy when you sell them to avoid paying extra for coverage you don't need.

When Your Payment Information Changes

Keeping your payment details up to date is important to avoid missing policy payments. Notify your insurance provider if you switch banks or want to change the account from which pre-authorized payments are made.

When Your Discount Eligibility Changes

Your insurance provider may offer discounts or perks, such as savings for students or alumni, or for using winter tires. Be sure to inform your insurer if you become eligible for any new discounts. Similarly, if your eligibility for a discount changes, such as if you stop using winter tires, you should notify your insurer.

Frequently asked questions