New Bern Insurance Companies
TYPES OF HOMEOWNERS POLICIES
Whether you own or rent, there are different
packages of home insurance offered to protect
your home and belongings. Each package
protects against a specified number of perils
such as fire, windstorm and theft.
In addition to coverage for named perils,
each package policy usually contains
coverage for property damage, additional
living expenses, personal liability and medical
payments. Homeowners policies apply to
most owner-occupied single family dwellings
and is modified slightly for apartments and
The homeowners market in North Carolina
primarily references six types of homeowners
policies. Four of the six are normally
purchased to handle single family dwellings
while the remaining two are normally
purchased for coverage on an apartment or
BASIC HOMEOWNERS INSURANCE
A homeowners insurance policy is a multiperil
policy, which means it combines
property and casualty coverages in the same
policy. A multi - peril policy offers numerous
advantages to consumers as it conveniently
packages a range of coverages under one
policy and is normally cheaper than if all the
coverages were purchased individually.
Homeowners insurance is sold as a personal
package policy designed to cover a broad
spectrum of perils associated with owning or
renting a home. A peril is an event that causes
damage to property; two examples are fire
and theft. Although insurance on your home
is not required by North Carolina law, if your
home is mortgaged your lender may require
the purchase of insurance on your home.
Additionally, if you are a renter your landlord
may suggest that you purchase insurance to
cover your personal property.
Homeowners insurance also protects you
against liability for accidents that injure
other people or damage their property. The
policy covers medical expenses for persons
accidentally injured on your property.
The policy does not protect you against
losses from floods, earthquakes, mudslides,
mudflows or landslides. Contact your agent
to discuss your options for obtaining coverage
for these losses. Please see our special section
regarding flood insurance below:
The homeowners policy contains two
sections. Section I provides property
coverages (A, B, C and D) while Section II
provides liability coverages (E and F). A brief
description of the individual coverages follow:
Coverage A - Dwelling
Provides major property coverage
that protects your house and attached
structures if it is damaged by certain events.
It also covers fixtures in the house such
as plumbing, heating, and permanently
installed air - conditioning systems, electrical
wiring and supplies on or adjacent to the
residence premises for use in the construction,
alteration, or repair of the dwelling or other
The amount of Coverage A is normally
established by the market value, purchase
price or other identifiers associated with
establishing the value of the dwelling.
You should always carry an amount of
insurance equal to a minimum 80 percent
of the full replacement cost of the dwelling.
Replacement cost is the amount it would take
to replace or rebuild your home or repair
damages with materials of similar kind and
quality, without deducting for depreciation.
Language in the policy contract states that
there is a reduction in the amount payable
for a loss if Coverage A is not a minimum of
80 percent of the full replacement cost of the
Coverage B - Other Structures
This coverage provides protection to other
structures on the residence premises that are
not attached to the dwelling. Items covered
include detached garages, tool sheds, etc.
Coverage B is normally limited to 10 percent
of the Coverage A limit. However, you may
purchase more coverage for an additional
You should always carry an amount of
insurance equal to a minimum 80 percent
of the full replacement cost of the other
structures. Language in the policy contract
states that there is a reduction in the
amount payable for a loss if Coverage B is
not a minimum of 80 percent of the full
replacement cost of the other structures.
Coverage C - Personal Property
This coverage provides protection for the
contents of your home and other personal
belongings owned by you or family members
who live with you. Coverage C is normally
50 percent of Coverage A (if coverage is also
provided for the dwelling under the policy)
or is subject to an established amount agreed
upon by you and the insurance company.
Coverage is limited on certain types of
property that are especially susceptible to
loss, such as cash, securities, jewelry, furs,
manuscripts and stamp or coin collections.
Additional amounts of insurance may be
purchased. You may want to consider
scheduling these items separately. Ask your
agent for specifics.
Coverage D - Loss of Use
This coverage will help with additional living
expenses if your home is damaged by a peril
insured against to the extent that you cannot
live in your home. These expenses include,
but are not limited to, housing, meals and
It is important to note that your company will
only pay those additional expenses above and
beyond your normal and customary living
expenses. Coverage D is normally limited to
20 percent of Coverage A.
You must keep receipts for all additional living
expenses and submit them to your company
for reimbursement consideration. All of the
exclusions, conditions and specific language
can be found in your policy.
Coverage E - Personal Liability
This section of the homeowners policy
will provide coverage in the event you or
a resident of your household are legally
responsible for injury to others. Coverage E
will provide a defense and will pay damages,
as the insurance company deems appropriate.
There are some exceptions. The liability
coverage will not protect you in all situations,
such as an intentional act. All of the exclusions
and specific language can be found in your
Coverage F - Medical Payments to Others
This coverage pays for reasonable medical
expenses for persons accidentally injured on
your property. For example, if a neighbor’s
child is injured while playing in your home,
the medical payments portion of your
homeowners policy may pay for necessary
medical expenses. The medical payments
portion of your homeowners policy may also
pay if you are involved in the injury of another
person away from your home in some limited
Medical payments coverage does not apply
to your injuries or injuries of those that reside
in your household. It is not a substitute for
health insurance. Business activities are also
excluded. All of the exclusions and specific
language can be found in your policy. You
should check with your agent or insurance
company to discuss the limit of medical
payments coverage needed.
Steve Tyson is a native of New Bern and a
licensed Real Estate Broker for over 25 years. He is also a licensed General Contractor and built homes before getting in Real Estate full time.
Steve's wife Jana is also a Real
Estate Broker with 20 years experience. Together with their assistance they form the Tyson Group.
Whether you are looking for a single family home or commercial investment
property our combination of experience and the Keller Williams brand make
buying or selling real estate easy.
Want to learn more about the Tyson Group? Click Here!
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Steve and Jana Tyson sold over $60 million of Real Estate in the past 2 years and over $150 million in the past 10 years. The Tyson Group are "Leading The Market, Sign up to Sign Down".