Why does my policy have more than one deductible?

A policy commonly carries a flat deductible for most claims and a separate percentage-based wind and hail deductible in storm-exposed states like Georgia.

Does my own insurance cover me when I stay in an Airbnb or VRBO?

The host's short-term rental policy protects the host, not you. As an Airbnb or VRBO guest, your own homeowners or renters insurance usually covers your belongings and personal liability away from home, within policy limits, while travel insurance covers trip-specific risks neither the host nor your home policy will.

Does homeowners insurance cover flood damage?

No. Standard homeowners policies exclude all flood damage regardless of cause.

What does uninsured motorist coverage do?

If you are hit by a driver with no insurance or not enough insurance, uninsured and underinsured motorist coverage pays your medical bills.

When do we use Selective for flood coverage versus NFIP?

Selective private flood wins for Zone X and moderate AE properties where it beats NFIP on price and offers higher limits with ALE coverage.

How much dwelling coverage do I need in Georgia?

All FAQs

Quick answer: Georgia OCI guidance says your dwelling limit should reflect the cost to rebuild your home today, not its market price or tax appraisal. Standard policies require insuring to at least 80 percent of replacement cost to avoid a coinsurance penalty. A coverage review sizes the limit to your specific home.

Georgia Office of Commissioner of Insurance (OCI) guidance ties the dwelling coverage limit on a homeowners policy to the cost of rebuilding the home today, not its market sale price and not its county tax appraisal. Rebuild cost reflects current construction material and labor prices for that specific home and location, and it commonly differs from both the price a buyer would pay for the home and the value a county assessor uses for property tax purposes.

Standard homeowners policies contain a coinsurance clause requiring the dwelling to be insured to at least 80 percent of its full replacement cost, the amount needed to rebuild the home with materials of similar kind and quality without any deduction for age. Falling under that 80 percent threshold triggers a coinsurance penalty, a formula insurers use to reduce a claim payment in proportion to how underinsured the dwelling is.

For example, a home with a true rebuild cost of $350,000 insured for only $250,000 is insured to about 71 percent of replacement cost, below the 80 percent requirement. A $50,000 kitchen fire on that home would not be paid in full; the coinsurance penalty formula reduces the payout to reflect the shortfall between what was insured and what the 80 percent requirement called for, leaving the homeowner to cover the difference.

Construction costs change over time, so a dwelling limit set several years ago can fall below current rebuild cost even without any changes to the home itself. The dwelling limit also interacts with the wind and hail deductible on many Georgia policies, since that deductible is often a percentage of the dwelling limit rather than a flat number, so raising the dwelling limit raises the dollar amount of that deductible too.

A coinsurance penalty and an underinsured dwelling limit are separate from the flood exclusion described on the Georgia homeowners insurance page; both gaps can exist on the same policy at once. A coverage review looks at a specific home's square footage, construction type, and local rebuild costs to size the dwelling limit for that address rather than relying on the purchase price or tax bill.