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HOME INSURANCE 101

Got two minutes? That's all it takes to learn about our home insurance offerings. No, seriously.



Clever Home Coverage Options
DWELLING COVERAGE PERSONAL PROPERTY OR CONTENTS COVERAGE OTHER STRUCTURES EXTRA EXPENSE LIABILITY MEDICAL PAYMENTS TO OTHERS OTHER

Dwelling Coverage

Dwelling Coverage


This is a fancy insurance term for your house. This coverage protects the home, attached garages, roofs, flooring, attached fixtures from damages caused by fire, wind, hail, theft, vandalism and more.

Personal Property or Contents Coverage

Personal Property or Contents Coverage


Simply put, your stuff. From the tools in your garage to the furniture and electronics in your home, personal property coverage is pretty essential.

Other Structures

Other Structures


This coverage is for other structures on the property like detached garages, storage sheds, fences and gazebos.

Extra Expense

Extra Expense


Also known as loss of use or temporary living expenses, this coverage is all about helping out. Extra expense coverage assists with necessary increased living expenses when an insured dwelling is uninhabitable as a result of damage by a covered cause of loss.

Liability

Liability


This coverage protects you against damages arising from an accident that results in the bodily injury or property damage to others, for which you are held liable. It also includes covering court costs and the cost of defending yourself for covered claims.

Medical Payments to Others

Medical Payments to Others


This coverage provides payments for medical, surgical, dental, ambulance and hospital expenses to those injured on your property as a result of an accident.

Other

Other


Clever offers tons of other types of coverage, from Inflation Protection, Sewer Backup Coverage, Identity Theft Expense Coverage and beyond. Want to learn more about these selections? Click here to view the whole list of coverage options and read more about them.

Here are some frequently asked questions from homeowners like you.

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Homeowners insurance coverage can vary by state and even between companies, but there are standard coverages offered in most states. Standard coverages offered by Clever include:
  • Dwelling coverage
    • This is a fancy insurance term for your house. This coverage protects the home, attached garages, roofs, flooring, attached fixtures, etc. from damages caused by fire, wind, hail, theft and more.
  • Personal property or contents coverage
    • Simply put, your stuff. From the tools in your garage to the furniture and electronics in your home, personal property coverage is pretty essential. It's important to know your personal property limits as there are typically limits on the coverage provided for certain types of personal property, such as jewelry and firearms. Also, you may want the option of selecting a lower deductible and/or a higher level of coverage on certain items. So, if you have the latest smartphone or a fancy camera, it would be a good idea to schedule that property. At Clever, we can give you more coverage on phones, jewelry, firearms, and cameras with a lower deductible if you schedule. Plus, scheduled personal property is broken out on declaration pages for your convenience.
  • Other structures
    • This coverage is for other structures on the property like detached garages, storage sheds, fences and gazebos. If you opt in, Clever can conveniently include up to 10% of your home value for coverage on your detached other structures.
  • Extra expense
    • Also known as loss of use or temporary living expenses, this coverage is all about helping out. Extra expense coverage assists with necessary increased living expenses when an insured dwelling is uninhabitable as a result of damage by a covered cause of loss. Clever covers you automatically at up to 20% of your dwelling's value. How is that for value?
  • Liability
    • This coverage protects you against damages arising from an accident that results in the bodily injury or property damage to others, for which you are held liable. It also includes covering court costs and the cost of defending yourself for covered claims. Clever offers a variety of coverage limits and you can pick the limit that is most appropriate for you.
  • Medical payments to others
    • This coverage provides payments for medical, surgical, dental, ambulance and hospital expenses to those injured on your property as a result of an accident. For instance, if you have a visitor at your home and they trip and fall on your front steps resulting in a visit to the doctor and a minor injury, your medical payments to others coverage would apply. Similar to your liability coverage, Clever offers a variety of coverage limits and you can pick the limit that is most appropriate for you.

Many other options and coverages are also available:
  • Dwelling Replacement Cost Coverage
  • Personal Property Replacement Cost Coverage
  • Inflation Protection
  • Increased Limits for Property Away from Premises
  • Increased Coverage for Theft of Credit Cards
  • Sewer Backup Coverage
  • Scheduled Personal Property
  • Personal Injury Coverage
  • Identify Theft Expense Coverage and Resolution Service
  • Reducing Property Deductible
  • Loss Assessment Coverage
  • Additional Insured Coverage
Although not legally required, your mortgage lender probably won't give you any cash until you purchase homeowners insurance. Homeowners insurance is an important investment protection tool. If you don't owe any money on your home (congrats, that's awesome!), consider the value of your home and if you can afford to repair or replace it without homeowners insurance funds backing you if you experience a loss. If you're considering leaving your home uninsured, it's also important to evaluate whether you could tackle fees associated with liability claims if someone becomes injured on your property and you are held liable. We’ve got your back.
Homeowners insurance is not a legal requirement. However, typically a mortgage lender will require the purchase of homeowners insurance. Your lender may even have a specific amount of coverage required to protect the investment. Reach out to a Clever expert for assistance. We have a ton of experience working with lenders!
Yes, property coverages have deductibles.

Here's an example of how it works:
There's damage to your home and personal property in the amount of $6,250 and you carry a $1,000 deductible on your home and personal property. Your claim payment is going to be $5,250. ($6,250 - $1,000 = $5,250)

Several other deductible options, including split wind/hail deductibles and reducing deductibles, are also available. Check your policy declaration page to see what deductible(s) you have.
A split wind/hail deductible means that you have a different deductible for covered wind and hail losses than for all other covered losses. The second, higher deductible listed will apply to a loss caused by wind or hail. The first deductible listed will apply to all other covered losses. Many states are heavily impacted by weather events each year. Having the option for a higher deductible for these weather events helps keep insurance premiums lower.
Premiums are based on many factors including:
  • Property value
  • Fire protection (miles to closest fire station, water access/hydrants)
  • Condition of property
  • Construction characteristics of property such as roof, heating, siding, etc.
  • Claims history
  • Age of property
  • Coverages and deductible(s) selected
  • Choose higher deductibles
  • Examine your coverages
  • Explore available discounts
  • New home discount
  • Security system
  • Bundling discount
  • Under construction
  • Claims forgiveness discount
  • Claims free discount
You bet. The bundling discount is available for both your auto and home insurance policies if you bundle the two. This credit is applied to each renewal of your policies if you maintain both the auto and home policies with Clever. Want to save even more? Get even deeper discounts when you bundle an auto, home and life policy with us. All the coverage you need, all in one place with deeper discounts. That's Clever.
Perils refer to hazards and events that are a source of loss or damage. If a peril is "insured" it means it is covered. If a peril is excluded, then you would not have coverage for it. Perils covered by your insurance vary between insurance companies and policy types. Feel free to reach out to a Clever expert for specifics on your policy.

Some commonly covered perils include:
  • Hail
  • Windstorm
  • Tornado
  • Lightning
  • Fire and smoke
  • Theft and vandalism
  • Falling trees or other objects
  • Water damage (think leaks not floods)
The dwelling replacement cost is the amount of money that it would take to re-build your home like it was before the loss, regardless of any depreciation due to age or condition. So, if you have replacement cost coverage on your dwelling (home) and your home is destroyed in a fire, this option would focus the claims settlement on a new home of like kind and quality. Clever, like most insurance companies, uses a tool such as a dwelling replacement cost valuation guide to assist in calculating an appropriate re-build value. Here at Clever, we take the value of your home very seriously and do a thorough job calculating your re-build or replacement cost value.
Replacement cost loss settlement on personal property considers the initial price tag paid for the items, regardless of any potential depreciation due to age or condition. Replacement cost on personal property is generally the most recommended option since it gets homeowners closest to their living situation before the covered loss occurred. For example, if your 5 year old flat screen TV gets damaged in a loss, your policy will pay for you to get a new flat screen, similar to what you had. It will not deduct depreciation due to its age.
Actual Cash Value or ACV is a method of valuing insured property. Actual Cash Value is not equal to replacement cost value. ACV is computed by subtracting depreciation from replacement cost. Depreciation is the decrease in the value of property over a period of time, usually as a result of age, wear and tear, or economic obsolescence. For example, if you have ACV dwelling (home) coverage and your home is destroyed in a fire, then depreciation is deducted from your claim payment due to the age and condition of your home at the time of the loss. Another way to think about Actual Cash Value is that it is typically the amount for which property could be sold, which is generally less than what it would cost to replace it.
Inflation protection is a policy feature on all replacement cost policies which protects the rebuild cost of your home. It automatically increases the amount of insurance on your home each year to account for the disparity caused by inflation. So if you first insure your home for $200,000, on year two when your policy renews, the annual rate of inflation is calculated and added to your home value. If the annual inflation percentage is 3%, then your home value would increase to $206,000. Since your contents coverage is typically a percentage of your home value, then your contents amount should increase accordingly too. We've got you covered!
You automatically receive up to 10% of your personal property value for your personal property that is located away from the insured premises. As an example, if you have $100,000 in personal property coverage with Clever, you would have up to $10,000 for your stuff that is stored somewhere else, like maybe in your parent's basement or in a storage unit. If this value is not enough and you would like to purchase more, you may do so under this option. Clever offers additional limits in the amounts of $2,000, $3,000 or $5,000.
Your Clever homeowners policy automatically includes $2,500 coverage for loss due to the theft of credit cards, fund transfer card or loss due to check forgery. If you would like to purchase more coverage than that, you can increase up to $10,000 under this option.
This is an optional add-on which may help pay for water damage resulting from a backed up drain or sump pump. For instance, it may help cover the cost of replacing flooring or furniture or removing water after an unexpected backup. Clever offers sewer backup coverage with limits of $5,000 or policy limits. (policy limits = your home value + your personal property value)
Your homeowners policy provides a certain level of coverage and deductible for your personal property. There are limits in place for certain types of personal property such as jewelry and firearms. Therefore, there may be some situations which warrant scheduling certain items of your personal property. For instance, maybe you have a very nice wedding ring that you want to schedule on your policy with a specific value, a lower deductible and additional covered causes of loss. Also, maybe you would like to see that item insured separately and listed out on your declaration pages just for your peace of mind. We get that. Clever offers several personal property classifications for you to schedule your "big ticket" items. Minimum and maximum values do apply.
Personal injury is an optional add-on which provides liability coverage for the policy holder from lawsuits filed over issues like defamation, libel and slander. It also protects against lawsuits involving false arrest, unlawful imprisonment and malicious prosecution. Any illegal invasion of a person's home, possessions or privacy are also covered.
This is an option available under the homeowners policy to insure a criminal event in which an imposter obtains key pieces of your personal information, such as Social Security or driver's license numbers, in order to impersonate you, the insured. This option provides up to $25,000 coverage for a variety of expenses related to the identity theft, such as the costs involved for certified mail sent to law enforcement and financial institutions, loan re-application fees due to incorrect credit information, reasonable attorney fees, we even provide coverage for your lost income due to having to take off work to take care of all of this. We also provide resolution services from a professional that has experience with identity theft and can help you through step by step. How is that for peace of mind?
With this option, your deductibles reduce by $100 for each annual loss-free period. Assume you purchase a $1000 deductible with the reducing deductible option. At the end of the first year, if loss-free, you earn a $100 credit that would be applied toward your deductible in the event of a claim. If you remain loss-free for five consecutive years, the credit would accumulate to $500. If a claim then occurs, your deductible would be only $500 ($1000 - $500 = $500). Pretty sweet, huh?
This is an optional coverage that may be needed by condominium owners. Condo associations often include common areas which are shared by all unit owners, maybe a pool area, rec room or courtyard. The insurance policies that the condo association carries for these common areas typically have large deductibles. Therefore, if these common areas are damaged and suffer an insurance loss, the condo association may assess your share of their deductible back to you. But no worries, this Clever option has you covered. Loss assessment coverage pays for your share of the condo association deductible that is assessed to you due to loss to a common area caused by a covered peril.
No. Flood insurance is a completely separate policy backed by the federal government. Here's a time saving tip: no matter where you choose to purchase flood insurance for your property, the cost is going to be the same.
  • Notify the police within 24 hours of discovery
  • Notify credit card or fund transfer card company in case of loss of a credit card
  • Notify a Clever expert immediately and report a claim
  • Protect your property and belongings from further damage
  • Make reasonable and necessary repairs to protect the property
  • Keep an accurate record of repair expenses
  • Notify a Clever expert immediately and report a claim
  • Notify the police within 24 hours of discovery
  • Protect your property and belongings from further damage
  • Make reasonable and necessary repairs to protect the property
  • Keep an accurate record of repair expenses
  • Notify a Clever expert immediately and report a claim
Homeowners insurance coverage can vary by state and even between companies, but there are standard coverages offered in most states. Standard coverages offered by Clever include:
  • Dwelling coverage
    • This is a fancy insurance term for your house. This coverage protects the home, attached garages, roofs, flooring, attached fixtures, etc. from damages caused by fire, wind, hail, theft and more.
  • Personal property or contents coverage
    • Simply put, your stuff. From the tools in your garage to the furniture and electronics in your home, personal property coverage is pretty essential. It's important to know your personal property limits as there are typically limits on the coverage provided for certain types of personal property, such as jewelry and firearms. Also, you may want the option of selecting a lower deductible and/or a higher level of coverage on certain items. So, if you have the latest smartphone or a fancy camera, it would be a good idea to schedule that property. At Clever, we can give you more coverage on phones, jewelry, firearms, and cameras with a lower deductible if you schedule. Plus, scheduled personal property is broken out on declaration pages for your convenience.
  • Other structures
    • This coverage is for other structures on the property like detached garages, storage sheds, fences and gazebos. If you opt in, Clever can conveniently include up to 10% of your home value for coverage on your detached other structures.
  • Extra expense
    • Also known as loss of use or temporary living expenses, this coverage is all about helping out. Extra expense coverage assists with necessary increased living expenses when an insured dwelling is uninhabitable as a result of damage by a covered cause of loss. Clever covers you automatically at up to 20% of your dwelling's value. How is that for value?
  • Liability
    • This coverage protects you against damages arising from an accident that results in the bodily injury or property damage to others, for which you are held liable. It also includes covering court costs and the cost of defending yourself for covered claims. Clever offers a variety of coverage limits and you can pick the limit that is most appropriate for you.
  • Medical payments to others
    • This coverage provides payments for medical, surgical, dental, ambulance and hospital expenses to those injured on your property as a result of an accident. For instance, if you have a visitor at your home and they trip and fall on your front steps resulting in a visit to the doctor and a minor injury, your medical payments to others coverage would apply. Similar to your liability coverage, Clever offers a variety of coverage limits and you can pick the limit that is most appropriate for you.

Many other options and coverages are also available:
  • Dwelling Replacement Cost Coverage
  • Personal Property Replacement Cost Coverage
  • Inflation Protection
  • Increased Limits for Property Away from Premises
  • Increased Coverage for Theft of Credit Cards
  • Sewer Backup Coverage
  • Scheduled Personal Property
  • Personal Injury Coverage
  • Identify Theft Expense Coverage and Resolution Service
  • Reducing Property Deductible
  • Loss Assessment Coverage
  • Additional Insured Coverage
Although not legally required, your mortgage lender probably won't give you any cash until you purchase homeowners insurance. Homeowners insurance is an important investment protection tool. If you don't owe any money on your home (congrats, that's awesome!), consider the value of your home and if you can afford to repair or replace it without homeowners insurance funds backing you if you experience a loss. If you're considering leaving your home uninsured, it's also important to evaluate whether you could tackle fees associated with liability claims if someone becomes injured on your property and you are held liable. We’ve got your back.
Homeowners insurance is not a legal requirement. However, typically a mortgage lender will require the purchase of homeowners insurance. Your lender may even have a specific amount of coverage required to protect the investment. Reach out to a Clever expert for assistance. We have a ton of experience working with lenders!
Yes, property coverages have deductibles.

Here's an example of how it works:
There's damage to your home and personal property in the amount of $6,250 and you carry a $1,000 deductible on your home and personal property. Your claim payment is going to be $5,250. ($6,250 - $1,000 = $5,250)

Several other deductible options, including split wind/hail deductibles and reducing deductibles, are also available. Check your policy declaration page to see what deductible(s) you have.
A split wind/hail deductible means that you have a different deductible for covered wind and hail losses than for all other covered losses. The second, higher deductible listed will apply to a loss caused by wind or hail. The first deductible listed will apply to all other covered losses. Many states are heavily impacted by weather events each year. Having the option for a higher deductible for these weather events helps keep insurance premiums lower.
Premiums are based on many factors including:
  • Property value
  • Fire protection (miles to closest fire station, water access/hydrants)
  • Condition of property
  • Construction characteristics of property such as roof, heating, siding, etc.
  • Claims history
  • Age of property
  • Coverages and deductible(s) selected
  • Choose higher deductibles
  • Examine your coverages
  • Explore available discounts
  • New home discount
  • Security system
  • Bundling discount
  • Under construction
  • Claims forgiveness discount
  • Claims free discount
You bet. The bundling discount is available for both your auto and home insurance policies if you bundle the two. This credit is applied to each renewal of your policies if you maintain both the auto and home policies with Clever. Want to save even more? Get even deeper discounts when you bundle an auto, home and life policy with us. All the coverage you need, all in one place with deeper discounts. That's Clever.
Perils refer to hazards and events that are a source of loss or damage. If a peril is "insured" it means it is covered. If a peril is excluded, then you would not have coverage for it. Perils covered by your insurance vary between insurance companies and policy types. Feel free to reach out to a Clever expert for specifics on your policy.

Some commonly covered perils include:
  • Hail
  • Windstorm
  • Tornado
  • Lightning
  • Fire and smoke
  • Theft and vandalism
  • Falling trees or other objects
  • Water damage (think leaks not floods)
The dwelling replacement cost is the amount of money that it would take to re-build your home like it was before the loss, regardless of any depreciation due to age or condition. So, if you have replacement cost coverage on your dwelling (home) and your home is destroyed in a fire, this option would focus the claims settlement on a new home of like kind and quality. Clever, like most insurance companies, uses a tool such as a dwelling replacement cost valuation guide to assist in calculating an appropriate re-build value. Here at Clever, we take the value of your home very seriously and do a thorough job calculating your re-build or replacement cost value.
Replacement cost loss settlement on personal property considers the initial price tag paid for the items, regardless of any potential depreciation due to age or condition. Replacement cost on personal property is generally the most recommended option since it gets homeowners closest to their living situation before the covered loss occurred. For example, if your 5 year old flat screen TV gets damaged in a loss, your policy will pay for you to get a new flat screen, similar to what you had. It will not deduct depreciation due to its age.
Actual Cash Value or ACV is a method of valuing insured property. Actual Cash Value is not equal to replacement cost value. ACV is computed by subtracting depreciation from replacement cost. Depreciation is the decrease in the value of property over a period of time, usually as a result of age, wear and tear, or economic obsolescence. For example, if you have ACV dwelling (home) coverage and your home is destroyed in a fire, then depreciation is deducted from your claim payment due to the age and condition of your home at the time of the loss. Another way to think about Actual Cash Value is that it is typically the amount for which property could be sold, which is generally less than what it would cost to replace it.
Inflation protection is a policy feature on all replacement cost policies which protects the rebuild cost of your home. It automatically increases the amount of insurance on your home each year to account for the disparity caused by inflation. So if you first insure your home for $200,000, on year two when your policy renews, the annual rate of inflation is calculated and added to your home value. If the annual inflation percentage is 3%, then your home value would increase to $206,000. Since your contents coverage is typically a percentage of your home value, then your contents amount should increase accordingly too. We've got you covered!
You automatically receive up to 10% of your personal property value for your personal property that is located away from the insured premises. As an example, if you have $100,000 in personal property coverage with Clever, you would have up to $10,000 for your stuff that is stored somewhere else, like maybe in your parent's basement or in a storage unit. If this value is not enough and you would like to purchase more, you may do so under this option. Clever offers additional limits in the amounts of $2,000, $3,000 or $5,000.
Your Clever homeowners policy automatically includes $2,500 coverage for loss due to the theft of credit cards, fund transfer card or loss due to check forgery. If you would like to purchase more coverage than that, you can increase up to $10,000 under this option.
This is an optional add-on which may help pay for water damage resulting from a backed up drain or sump pump. For instance, it may help cover the cost of replacing flooring or furniture or removing water after an unexpected backup. Clever offers sewer backup coverage with limits of $5,000 or policy limits. (policy limits = your home value + your personal property value)
Your homeowners policy provides a certain level of coverage and deductible for your personal property. There are limits in place for certain types of personal property such as jewelry and firearms. Therefore, there may be some situations which warrant scheduling certain items of your personal property. For instance, maybe you have a very nice wedding ring that you want to schedule on your policy with a specific value, a lower deductible and additional covered causes of loss. Also, maybe you would like to see that item insured separately and listed out on your declaration pages just for your peace of mind. We get that. Clever offers several personal property classifications for you to schedule your "big ticket" items. Minimum and maximum values do apply.
Personal injury is an optional add-on which provides liability coverage for the policy holder from lawsuits filed over issues like defamation, libel and slander. It also protects against lawsuits involving false arrest, unlawful imprisonment and malicious prosecution. Any illegal invasion of a person's home, possessions or privacy are also covered.
This is an option available under the homeowners policy to insure a criminal event in which an imposter obtains key pieces of your personal information, such as Social Security or driver's license numbers, in order to impersonate you, the insured. This option provides up to $25,000 coverage for a variety of expenses related to the identity theft, such as the costs involved for certified mail sent to law enforcement and financial institutions, loan re-application fees due to incorrect credit information, reasonable attorney fees, we even provide coverage for your lost income due to having to take off work to take care of all of this. We also provide resolution services from a professional that has experience with identity theft and can help you through step by step. How is that for peace of mind?
With this option, your deductibles reduce by $100 for each annual loss-free period. Assume you purchase a $1000 deductible with the reducing deductible option. At the end of the first year, if loss-free, you earn a $100 credit that would be applied toward your deductible in the event of a claim. If you remain loss-free for five consecutive years, the credit would accumulate to $500. If a claim then occurs, your deductible would be only $500 ($1000 - $500 = $500). Pretty sweet, huh?
This is an optional coverage that may be needed by condominium owners. Condo associations often include common areas which are shared by all unit owners, maybe a pool area, rec room or courtyard. The insurance policies that the condo association carries for these common areas typically have large deductibles. Therefore, if these common areas are damaged and suffer an insurance loss, the condo association may assess your share of their deductible back to you. But no worries, this Clever option has you covered. Loss assessment coverage pays for your share of the condo association deductible that is assessed to you due to loss to a common area caused by a covered peril.
No. Flood insurance is a completely separate policy backed by the federal government. Here's a time saving tip: no matter where you choose to purchase flood insurance for your property, the cost is going to be the same.
  • Notify the police within 24 hours of discovery
  • Notify credit card or fund transfer card company in case of loss of a credit card
  • Notify a Clever expert immediately and report a claim
  • Protect your property and belongings from further damage
  • Make reasonable and necessary repairs to protect the property
  • Keep an accurate record of repair expenses
  • Notify a Clever expert immediately and report a claim
  • Notify the police within 24 hours of discovery
  • Protect your property and belongings from further damage
  • Make reasonable and necessary repairs to protect the property
  • Keep an accurate record of repair expenses
  • Notify a Clever expert immediately and report a claim

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