Property Insurance FAQ’s

Property liability insurance is a coverage that financially protects you in the event of a lawsuit. This coverage focuses on the potential consequences of your actions, rather than protecting your own property.

This will cover the damages for bodily harm or property damage that occurs on or off the property. This type of coverage is sometimes referred to as “slip and fall” insurance due to the commonness of that type of claim.

Liability coverage is the foundation of all property insurance policies and will be included on all types of property insurance policies.

Your property insurance liability coverage extends to all the resident members of the household. This includes, but is not necessarily limited to: You, your spouse/significant other, your children, and even your pets (some exclusions for exotic pets).

If your household has a single family consisting of two adults, two children, a cat, and a dog, then all of these members would be covered under your property insurance liability coverage. Temporary guests and tenants would not be covered under the property’s liability coverage and would need their own liability protection.

No, your liability coverage extends to outside of the home and virtually everywhere in the world. If you’re on holiday and your child inadvertently knocks over a $500,000 antique vase, your liability protection would extend to that.

If you’re driving a vehicle, motorcycle, ATV, or other insurable product, it would be the liability protection from that policy that would protect you from financial consequences.

At Tango Insurance, we recommend a minimum of $2 million in liability coverage for all policies. If you were to only carry $1 million in liability coverage and were sued for $1.25 million in damages, your insurance would cover the first $1 million in damages and you’d be personally responsible for the other $250,000. For this reason, it is recommended to carry no less than $2 million in liability coverage.

Dwelling coverage refers specifically to physical structure of the home including attached structures like a garage or deck, against covered events such as fire, windstorm, or vandalism. It is the coverage that pays for repairing or rebuilding your home if it’s damaged or destroyed by a covered event. This coverage does not apply to tenant insurance.

Contents coverage is the portion of the policy that protects the personal belongings inside the insured property, such as: Furniture, clothing, electronics, and other items, against covered events like theft, fire, or water damage. It provides reimbursement for repairing or replacing these items if they are damaged, destroyed, or stolen.

Home appliances such as a microwave, refrigerator, stove, etc, are considered a part of your content’s coverage. If you are renting your dwelling out, you will still need contents coverage to cover the cost of the appliances.

Contents coverage does extend outside of the home as well. If you have expensive personal belongings in a vehicle and they are stolen, it is your property insurance that covers the cost to replace them and not your auto insurance.

All insurance providers offer different levels of coverage on their property limits. They will special limits on certain categories of items. Some categories with special limits include:

• Coins
• Jewelry
• Utility trailers
• Musical instruments
• Luggage
• Bicycles
• And more

Talk to your agent or broker about your coverage limits or if you have any unique items/collections that may need additional coverage. You can name items on your insurance that will provide additional coverage for your home.  

Outbuildings are other physical structures on your property that aren’t directly attached to your home. This can include, but is not limited to:

• Detached garages/Shops/Sheds (including their contents)
• Pool house/Recreational structures (including their contents)
• Fences
• Decks
• Playgrounds

Outbuilding coverage is usually calculated at a percentage of the estimated replacement cost of the property. It does vary by company, but it will usually be between 8%-15% of the homes replacement cost. Note, that estimated replacement cost refers to the cost it would take reconstruct the home in a total loss, and not the purchase price of the home.

The standard 8%-15% coverage for outbuildings is typically included in your annual premium and does not cost extra. You can get supplemental coverage for outbuildings with only a small premium increase. If you install a new deck, fence, or shed, it’s a good idea to talk to your agent or broker to ensure you have sufficient coverage for your structures.

Extra protections vary by insurance provider, but some examples include:

• Identity theft coverage: For legal fees, lost time, emotional distress, and damage to credit done as the result of a stolen identity.
• Home systems coverage: For damage caused to home systems such as heating, cooling, appliances and electronics that are not typically covered under standard property insurance policies. 
• Service line coverage: For damage resulting from a leak, break or other damage to a water, sewer, heat, steam, power, or other service line. 
• Even more: Talk to your insurance broker about all of the possible coverages for your property.