What Does Homeowners Insurance Cover in Connecticut?

What does homeowners insurance cover in Connecticut? Most homeowners bought their policy at closing, because the lender required it, and have not looked at it since. That is understandable. It is also why so many claims conversations begin with “I thought that was covered.” This is a walk through what a standard Connecticut homeowners policy actually does, what it leaves out, and what is worth adding if you own a house in Farmington, Avon, Simsbury, West Hartford or anywhere else in the Valley.

The six coverages in every homeowners policy

A standard policy (the industry calls it an HO-3) is built from six parts, lettered A through F.

Coverage A, Dwelling. The house itself: structure, roof, built-in systems, attached garage. The limit should be what it costs to rebuild, which in Hartford County has risen sharply in recent years and is often higher than the market value of an older home. A limit set at the purchase price five years ago may be badly short today.

Coverage B, Other structures. Detached garage, shed, fence, in-ground pool. Usually set at ten percent of the dwelling limit, which is not enough if you have a real barn or a detached workshop.

Coverage C, Personal property. Your belongings, typically 50 to 70 percent of the dwelling limit. Two things to check: whether it pays replacement cost or depreciated actual cash value (insist on replacement cost), and the sublimits on jewelry, firearms, silver and cash, which are low.

Coverage D, Loss of use. If a covered loss makes the house unlivable, this pays for a rental and the extra cost of living elsewhere while repairs are done. Rebuilds in this market take months, so make sure this is not capped too tightly.

Coverage E, Personal liability. Covers you if someone is hurt on your property or you cause damage to others, including lawsuits. The default is $100,000 or $300,000. For most homeowners with equity and savings, $500,000 plus a personal umbrella is the right answer.

Coverage F, Medical payments. Small, no-fault payments for guests injured on your property, regardless of who is at fault. Keeps small injuries from becoming lawsuits.

What a Connecticut homeowners policy does not cover

This is the list that matters.

Flood. Excluded on every standard policy, regardless of where you live. Surface water from a storm, an overflowing Farmington River, or runoff from a neighbor’s yard is flood. Coverage comes from the National Flood Insurance Program or a private flood carrier, and you do not need to be in a mapped flood zone to buy it.

Sewer and sump backup. Water that comes up through a drain or a failed sump pump is excluded unless you add a water backup endorsement. Almost every Farmington Valley house has a basement, and this is the most common claim we see denied on policies that skipped the endorsement. It costs very little to add.

Earth movement, settling and foundation problems. Earthquake, sinkholes, and the gradual deterioration of a foundation are excluded. The crumbling foundation problem affecting homes in parts of central and eastern Connecticut falls under this exclusion, which is why the state created a separate program to help affected owners.

Wear, tear, and maintenance. A roof that leaks because it is thirty years old is a maintenance issue, not a covered loss. Roof age is also a major factor in what you pay and whether a carrier will write the house at all.

Business activity. A home office laptop is fine. Clients coming to the house, inventory in the garage, or a business vehicle in the driveway are not covered under a homeowners policy.

Some dog breeds, trampolines, and unfenced pools. Carriers vary. Disclose them; an undisclosed dog is a good way to have a liability claim denied.

Endorsements worth adding for a Farmington Valley home

• Water backup. Add it. Every house with a basement.
• Extended or guaranteed replacement cost. Pays above the dwelling limit if rebuild costs exceed it. Essential in a rising-cost market.
• Ordinance or law. Pays the cost of bringing an older house up to current code during a rebuild. Important for pre-1970 homes in Unionville, West Hartford and Plainville.
• Scheduled personal property. Engagement rings, watches, art, instruments at appraised value with no deductible.
• Equipment breakdown. Covers furnaces, heat pumps, and major appliances against mechanical failure, which the base policy excludes.
• Personal umbrella. Not an endorsement but a separate policy. Adds $1 million or more of liability for a few hundred dollars a year.

The two numbers to check today

Pull out your declarations page and look at two things. First, the Coverage A dwelling limit: would that rebuild your house at today’s prices? If you are not sure, we will run a replacement cost estimate for free. Second, the deductibles: some Connecticut policies now carry a separate, higher wind or hurricane deductible expressed as a percentage of the dwelling limit. A two percent deductible on a $500,000 house is $10,000, which is not what most people picture when they think of their deductible.

If either number looks wrong, or you simply have not reviewed the policy since you bought the house, send us the declarations page and we will compare it line by line against what other carriers would offer. No obligation, and getting a quote does not affect your current coverage. More on homeowners insurance in the Farmington Valley.