Insurance 101

A standard homeowners policy (HO-3) is designed to protect you from financial disaster if your home is damaged by “covered perils.”

For homeowners in Tulsa and Bixby, this typically includes damage from fire, windstorms, hail, lightning, theft, and vandalism.

Crucially, it also includes Personal Liability coverage, which protects you if a guest is injured on your property, and Additional Living Expenses, which pays for a hotel if a storm makes your home in Jenks unlivable while repairs are made.

You need enough coverage to completely rebuild your home if it is destroyed—this is called the “Dwelling Limit.” Market value (what you can sell the house for) is often different from rebuild cost. For example, a historic home in Sapulpa might cost more to rebuild than its current market price due to material costs. We generally recommend insuring 100% of the replacement cost. Additionally, you should carry enough Liability protection to cover your total net worth, safeguarding your savings from lawsuits.

It depends on the source of the water. Home insurance generally covers “sudden and accidental” discharge of water. If a pipe bursts in your Sand Springs kitchen or a washing machine hose fails in Glenpool, the resulting water damage to floors and drywall is usually covered.

However, gradual damage – like a slow leak under a sink that rots the floor over months – is typically considered a maintenance issue and is not covered.

No. Standard homeowners policies never cover flood damage (defined as rising water from the outside, such as overflowing creeks or heavy rain accumulating on the ground). If you live near the Arkansas River or in low-lying areas of Collinsville or Skiatook, you must purchase a separate Flood Insurance policy (often through FEMA) to be protected against rising water.

This is the single most important definition in your policy.

• Replacement Cost pays to repair or replace your damaged items with new materials of like kind and quality, without deducting for age.

• Actual Cash Value (ACV) pays you what the item is worth today (depreciated value). If a hail storm destroys a 15-year-old roof in Bristow, an ACV policy might only pay a fraction of the cost to replace it because the roof is old. We almost always recommend Replacement Cost coverage to avoid massive out-of-pocket bills.