The following FAQs are taken from the NC Department of Insurance Guidelines to homeowners, 2017 edition:
Read your policy and make sure that it lists all coverages you have requested. Know exactly what your policy covers and does not cover.
Q: If my roof is damaged, does the company have to replace my whole roof?
A: No, they only replace the damaged area, even if the shingles will not match (e.g. the original shingles are now discontinued).
Q: A tree fell in my yard during a windstorm. My agent said my policy does not cover the cost of removing the tree. Why?
A: The homeowners policy will pay reasonable expense, up to $500 for any one loss, for the removal of trees from your premises provided the trees damage a covered structure.
Q: How does depreciation apply under a homeowner's policy?
A: Depreciation applies when the loss to carpet, furniture, and other items listed in the loss settlement conditions are covered under the actual cash value provisions of the policy.
As a general rule, actual cash value is the replacement cost of the item, less depreciation. Thus, using a television loss as an example, if the useful life of the TV is 10 years and it is five years old, the depreciation would be one half.
Q: If my house is destroyed, do I have to rebuild within a certain period of time?
A: You may disregard the replacement cost loss settlement provisions and make claim under your policy for loss or damage to buildings on an actual cash value basis. You may then make claim within 180 days after loss for any additional reimbursement according to the Loss Settlement Provisions in your homeowners contract.
Q: I recently submitted a claim for several items stolen from my home. The insurance company indicated it would not pay my claim unless I submit bills, receipts, or related documents that will prove I owned these items and justify the values that I am claiming. Do they have the right not to pay unless I give the information?
A: Yes. The insurance company has the contractual right to request any information it feels is necessary to confirm ownership and value of the items claimed. The ultimate responsibility of proving the loss is yours.
Q: I'm planning to purchase an older home, built in the 1800s. Is there a policy available for older homes?
A: Yes, the basic policy for older homes, HO0008, covers the home and your personal property. Many older homes, especially those with historical significance or with unique architectural aspects, would cost more to replace than the home's market value.
Some building materials used in the 1800s are no longer available today. Others would be so expensive that it would be nearly impossible to return your home to its former condition. If you are interested in getting a rate for your policy to cover actual replacement cost, contact your agent.