Georgia Homeowners Insurance Guide

Georgia regularly experiences an array of natural disasters, including hurricanes, flooding, high winds, winter storms, tornadoes, and more. Homeowners without adequate house insurance protection stand to suffer major financial losses from the damage these perils can cause. To help you select the right homeowners coverage for your Georgia home, we’ve put together a comprehensive guide to Georgia house insurance. In our guide, you will find information on the standard coverages included in homeowners policies and what to do when you cannot find an insurer.

Standard Coverages

A basic Georgia house insurance policy will include the following coverages:

• Structural coverage. This portion of the policy protects the actual structure of your home from perils like wind, theft, fire, hail, etc. Your structural coverage should include enough coverage to rebuild your home from scratch.
• Personal property coverage. Personal property covers the possessions stored in your home. Most personal property coverage also protects items you store in your vehicle and other structures on the premises, such as a garage or shed. Personal property coverage comes in two forms: actual cash value coverage and replacement cost coverage.
• Liability coverage. Liability coverage offers protection against lawsuits and claims that result from bodily injury or personal property the homeowner causes someone else.
• Additional living expenses. If you cannot live in your home safely after a loss, most Georgia house insurance policies will provide coverage for the additional living expenses you incur while your home is being rebuilt or repaired. For example, your policy might pay for a hotel or rental until your home is habitable again.

The Importance of CLUE Reports

A CLUE report, or a Comprehensive Loss Underwriting Exchange report, is a history of claims for a consumer or a property for the last five years. Before issuing coverage, prospective insurers pull CLUE reports for applicants and their homes. The Fair Credit Reporting Act also allows consumers to access their CLUE reports by contacting ChoicePoint Consumer Disclosure. Georgia homeowners should keep in mind that even if they have never filed a homeowners insurance claim, their CLUE reports may still contain claims filed against their property by previous homeowners.

Traditional Coverage Alternatives

Because of Georgia’s risk for hurricanes and other disasters, certain carriers have stopped issuing new homeowners insurance policies in the state. If you cannot find an insurer that will issue you house insurance coverage, Georgia offers an alternative called the FAIR plan. The FAIR plan, also called the Georgia Underwriting Association, is a group of licensed casualty and property insurers that exists to provide homeowner’s coverage to those who cannot obtain coverage on the standard market. Georgia residents can obtain FAIR plan coverage through an independent insurance broker or agent or directly from the FAIR plan.