Insurance Trivia, Homeowner Facts


If you're a proud homeowner in New York, having the right insurance is critical to your peace of mind. Before you purchase a policy, however, it's important to have a clear understanding of what homeowner's insurance does and does not cover. If you have specific concerns about your home or its location, it's likely that you can insure your home against these risks as long as you know which level of coverage or supplemental policy is required.

Take our quiz and find out what you need to know to be an informed consumer.


  1. True or false: My homeowner's insurance will cover the full cost of any damage to my home or property due to certain causes.
  2. True or false: If my home gets damaged, and I cannot live there while it is being repaired, my insurance policy will pay for me to stay in a hotel.
  3. Homeowner's insurance does not cover:
    1. Medical or legal costs if a person is injured in my home
    2. Damage due to mold or termites
    3. Sewer backups
    4. Destroyed or stolen cash
  4. True or false: If my home is damaged in a fire and I have replacement coverage, I will be able to replace all of the items that were lost.
  5. Homeowner's insurance takes into account a myriad of potential risk factors when calculating the cost of your policy. These do not include:
    1. Proximity to fire hydrants and/or a fire department
    2. Risk of flooding or other natural disasters
    3. Miscellaneous other hazards, from swimming pools to trampolines
    4. The age of your children
    5. The age of your roof, plumbing and electrical systems
  6. True or false: If my insurance company takes the risk of flood into consideration when calculating the cost of my property, it must cover damage that occurs due to flooding.


  1. True - but only if you have paid for "replacement cost" coverage rather than "actual-cash-value" coverage. If your policy only covers the latter, any deprecation will be deducted from the item's original value, and you will need to supplement in order to replace it completely. This can apply to anything from a roof damaged in a hail storm to a television lost in a fire.
  2. Maybe - Again, this is true only if your policy specifies "loss-of-use" coverage, so make sure to read the fine print.
  3. B, C and D: If an accident occurs on your property, or if you are responsible for another person's injuries or property damage (even if the incident did not occur on your property), your homeowner's insurance may offer limited coverage for medical and legal costs associated with those damages. Make sure and discuss the details with your insurance agent. However, pool accidents or dog bites by certain breeds may be excluded. As for the cash stashed between your mattresses or even in a safe if the cash is stolen or damaged, most insurance companies will only reimburse you for a limited amount, because it's nearly impossible to confirm it was there in the first place.
  4. False - Most items can be replaced under a replacement coverage policy, but insurers often require you to purchase additional "riders" for more expensive items like jewelry or artwork.
  5. D - The age of your children does not factor into the cost of your homeowner's insurance policy.
  6. False - Homeowner's insurance policies do not include flood insurance as part of a basic package. If your home is in a high-risk area, it may be wise to look into an added flood insurance policy. The same applies to other natural disasters, such as hurricanes, earthquakes, and tornadoes.

For more information about homeowner's insurance, call or contact Executive Insurance & Financial Services today.

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