HOME INSURANCE
NEVADA CONSUMER’S GUIDE
State of Nevada
Department of Business and Industry
DIVISION OF INSURANCE
Scott J. Kipper, Commissioner
Joe Lombardo, Governor
Dr. Kristopher Sanchez, Director
Updated: January 2023
TABLE OF CONTENTS
WHAT IS HOME INSURANCE? ................................................................................. 2
WHY BUY HOME INSURANCE? ............................................................................... 2
WHAT DOES HOME INSURANCE COVER? ............................................................ 2
HOW MUCH HOME INSURANCE DO I NEED? ........................................................ 4
DWELLING .................................................................................................................... 4
OTHER COVERAGES ...................................................................................................... 5
DEDUCTIBLES ............................................................................................................... 6
WHAT DIFFERENT POLICIES ARE AVAILABLE? .................................................. 6
HOMEOWNERS’ INSURANCE ........................................................................................... 6
OPTIONAL COVERAGES YOU MAY WISH TO CONSIDER .................................................... 9
WHAT AFFECTS HOME INSURANCE PRICES? ................................................... 10
HOW TO SHOP SMART FOR INSURANCE ............................................................ 11
SEEK UNBIASED INFORMATION ..................................................................................... 11
WHERE TO SHOP ......................................................................................................... 12
PRICE QUOTATIONS ..................................................................................................... 12
FOR YOUR PROTECTION .............................................................................................. 13
CONTACT INFORMATION ...................................................................................... 15
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Home Insurance
WHAT IS HOME INSURANCE?
Home insurance is an expensive, but sometimes necessary, purchase for many
Americans. This guide provides information on the benefits of home insurance,
generally available coverages, decisions that may lower the cost of your home
insurance and increase the value you receive.
The coverages offered to homeowners are typically contained in a package of
property coverages and liability coverages. This Consumer Guide principally
addresses the package of coverages found in a homeowner’s insurance policy, but
most of the information is also applicable to renters and/or owners of condominiums,
manufactured or mobile homes.
WHY BUY HOME INSURANCE?
Home insurance is not a mandatory requirement under Nevada law. However, there
are two major reasons to buy home insurance:
• To protect your assets.
o Home insurance covers the structure of your home and your personal
property, as well as your personal legal responsibility (or liability) for
injuries to others or their property while on your property.
• To satisfy your mortgage lender.
o Most mortgage lenders require you to have insurance as long as you
have a mortgage and to list them as the mortgagee on the policy. If you
let your insurance lapse, your mortgage lender will likely have your
home insured at cost to the lender and add the cost of insurance to
your mortgage payment. Compared to a policy you would buy on your
own, the premium might be much higher, and the coverage will be
limited to damage to the structure of your home. The lender can require
you to pay this higher premium until you obtain your own home
insurance again.
To get the best value for your money, you must take responsibility for your home
insurance purchase and make your own decisions.
WHAT DOES HOME INSURANCE COVER?
Whether you own or rent, there are different packages of home insurance offered to
protect your home and belongings. Each package protects against a specified
number of perils.
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This section describes the main types of coverage available in home insurance. Keep
in mind that you’re covered only if the loss is caused by a peril your policy covers.
Each type of coverage has an associated limit, so review your policy carefully for the
limits of your coverage.
• Dwelling – Coverage A. Pays for damage to your house and to structures
attached to your house. This includes damage to fixtures, such as plumbing,
electrical wiring, heating and permanently installed air-conditioning systems.
• Other Structures – Coverage B. Pays for damage to fences, tool or storage
sheds, freestanding garages, guest cottages and other structures not attached
to your house.
• Personal Property – Coverage C. Reimburses you for the value of your
possessions, including furniture, electronics, appliances and clothing,
damaged or lost even when they aren’t on your property, such as those at an
off-site storage locker or with your child at college. Any property away from the
insured location may be subject to coverage based upon a limited percentage
of value.
Some forms of personal property – such as silverware, computers, guns,
money, expensive antiques, and jewelry – have limited coverage under your
homeowner’s policy and may need additional insurance. Additional and
broader coverage may be added to your policy by purchasing an
endorsement.
Home insurance policies may provide limited coverage for small boats;
however, most home insurance policies do not cover motorized vehicles
unless they are not required to be licensed and used only to service your
home or designed to assist the handicapped.
• Loss of Use – Coverage D. Pays some of your additional living expenses
while your home is being repaired as a result of damage by an insured event.
Expenses may include limited rental home or motel cost, restaurant meals and
warehouse storage.
• Personal Liability – Coverage E. Covers your legal defense if you are sued
and financial loss if you are found legally responsible for injuries or damages
to someone else. This coverage applies to you and all family members who
live with you.
• Medical Payments – Coverage F. Pays medical expenses for persons
accidentally injured on your property or away from your premises caused by a
member of your family or your pets regardless of who is at fault. This coverage
does not apply to your injuries or those of family members living with you or to
activities involving your at-home business.
Peril is an insurance term for a specific risk or reason for a loss. Fire,
windstorm and theft are some common examples of perils. Some policies
cover all perils except those specifically excluded. At the other extreme
are policies that cover only the perils named in the policy.
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LIMITATIONS – VACANT HOMES
It is important to note that your home insurance policy may contain a “vacancy
clause” or other conditions which limit the coverage. If your home is vacant for a
certain number of days (usually 30 days or more), and you are unable to verify that
during your absence your home was being regularly visited by your representative,
your home insurance policy may exclude a loss that is incurred while the home is
vacant.
If you are selling your home and are living at an alternate location while waiting for
the sale, your insurer may convert your home insurance policy from an “all perils”
policy to a “specified perils” policy. This limits the insurer’s exposure to certain types
of risk and provides protection only from the perils specified in your new policy.
Insurers are required to disclose any changes to your policy to you.
Read the “Loss Settlement” clause in your insurance policy and discuss it with your
insurance agent or company to confirm that you have adequate coverage for your
home.
HOW MUCH HOME INSURANCE DO I NEED?
DWELLING
Your insurance agent usually will help you decide how much dwelling coverage to
buy when you first purchase homeowners’ insurance. Some people assume the
lender will require you to cover the house for at least the amount of the mortgage.
This may be either too little or too much coverage for your individual circumstances.
The mortgage amount often includes the value of the land, which is not destroyed if
the home were destroyed.
It is recommended to have coverage equal to the full replacement cost of your home.
You can choose to insure your home and belongings on either a replacement cost
basis or an actual cash value basis. These terms are explained below:
o Replacement cost is the amount it would take to replace or rebuild your home
or repair damages with materials of similar kind and quality, without deducting
for depreciation. Depreciation is the decrease in home or property value since
the time it was built or purchased because of age or wear and tear.
o Actual cash value is the amount it would take to repair or replace damage to
your home after depreciation. For example, if your roof has a 20-year warranty
and is 17 years old, there would be depreciation for the age and condition of
the roof.
Replacement cost and market value are not the same. The
market value, which includes the price of your land, depends on
the real estate market value.
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Many insurers require homeowners to insure their homes for at least 80 percent of
the replacement cost. If the homeowner fails to insure for at least 80 percent of the
replacement cost, a co-insurance penalty may apply to partial losses and most
insurers will only insure the home on an actual cash value basis.
For example, assume that it would cost $200,000 to replace your home, and it
is insured for $160,000 (80 percent of its replacement value). If a fire causes
$30,000 worth of damage, then your insurance company will pay the full
$30,000.
On the other hand, if your $200,000 home is insured for $100,000 (which is 50
percent of its replacement value), and you suffer a $30,000 loss, your
company would pay for only 50 percent ($15,000) of the loss. You would have
to pay the balance ($15,000) out-of-pocket.
Whether you choose to insure your home at replacement cost basis or actual cash
value basis, it is important to keep track of its value. Any changes to your home —
such as the addition of a room, new insulation, new hardwood floors etc. — and
yearly inflation can contribute to increased replacement cost of your home, while the
actual cash value of the home may increase or decrease over time.
Work with your agent or insurance company to establish an insurable value of your
dwelling. When determining this value, your agent or insurance company may
request one or all of the following: 1) information regarding the physical
characteristics of your home such as size, age, construction type, interior features,
etc.; 2) a physical inspection of the premises; or 3) photos.
OTHER COVERAGES
The limits of your coverage for other structures, for personal property and for loss of
use of your home, are expressed as percentages of your dwelling limit. The coverage
is usually a set percentage (see Table 1). For example, if your dwelling coverage limit
is $150,000 and your coverage for personal property is limited to 50% of your
dwelling coverage, your coverage for personal property would be $75,000.
Most standard home insurance policies cover the contents of your home (i.e.,
personal belongings) on an actual cash value basis. Many insurers offer an option for
you to insure your belongings at replacement cost. The premium will be slightly
higher for this coverage; however, you may want to consider this option. Check your
policy, or speak with your agent or insurer, as coverage limits might be based on
percentages different from those in Table 1.
You choose your coverage limits for your personal liability and for medical payments.
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Table 1 – Policy Limits
Coverage Component
Dwelling
Other Structures
Personal Property
Loss of Use
Personal Liability
Medical Payments
Always check with your agent or insurance company to ensure that you have
adequate coverage to protect your assets. Keep your agent and/or insurer informed
of any changes to your dwelling or other belongings so that the amount of coverage
is adequate.
DEDUCTIBLES
A deductible is the money you have to pay out-of-pocket on a claim before the policy
pays the loss. The deductible applies to coverage for your home and personal
property and is paid on each claim. Higher policy deductibles mean lower policy
premiums. A policy with a $1,000 deductible will have a lower premium than the
same policy with a $500 deductible.
Having a higher deductible can be a good way to save money on your home
insurance premium and an incentive to submit fewer claims. However, be sure you
can afford the deductible in case you have a loss.
WHAT DIFFERENT POLICIES ARE AVAILABLE?
An insurance form specifies what perils (such as fire, lightning, windstorm, etc.) your
home and/or belongings are insured against. The following are descriptions of the
various insurance forms available for homeowners, renters, and condominium
owners. Not all insurers use these exact terms to describe their home insurance
forms; however, the coverage provided will be similar.
HOME INSURANCE
Prepare yourself before you begin seeking home insurance quotes by getting to
know the types of home insurance forms available. The insurance industry shorthand
for the home insurance policy form is HO. There are several different HO categories,
but typically a consumer will only deal with four or five at most. A chart showing the
perils covered by the various home insurance forms is provided at the end of this
section (Table 2). Which perils your policy covers depends on the type of policy you
buy.
A type of home insurance policy is called a Form.
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o HO-1 – Basic Form: The HO-1 is the basic core policy. It covers the dwelling and
personal property only from losses caused by a specific list of perils: fire or lightning,
windstorm or hail, explosion, riot or civil commotion, aircraft, vehicles, smoke,
vandalism and malicious mischief, theft, breakage of glass constituting a part of the
building and volcanic eruption.
o HO-2 – Broad Form: The HO-2 form adds more potential risks including damage
from falling objects, such as trees, and damage from water caused by the accidental
overflow from plumbing, heating, air-conditioning or other household appliances.
o HO-3 – Special Form: The HO-3 is an extended or special homeowners’ insurance
policy form. This policy form is the most popular of all homeowners’ forms, as it offers
a broad range of coverage. This form is a mixture of an open perils policy and named
perils policy. This means that your home will be covered for almost every peril, except
those perils specifically excluded; while your contents are covered for the same perils
as provided under an HO-2.
o HO-4 – Renters’ Insurance Form: The HO-4 is the renters’ insurance policy form.
This policy will cover damage to a renter’s personal property up to a stated amount
for the same perils as the HO-2 form. There is no coverage for the dwelling, as that
would be insured by the owner or landlord. If you rent an apartment or a house, you
also need to consider protecting your liability exposure. This protection is available for
an additional premium. Liability coverage protects renters the same as it would if you
were a homeowner. Like homeowners’ insurance, the HO-4 provides coverage for
additional living expenses.
o HO-5 – Open Perils Form: This policy generally provides the broadest coverage
available, but it is not offered by all companies. The HO-5 insurance is an open peril
policy on both the dwelling and the contents. This means coverage will be provided
on both your home and personal property for almost every peril, providing it is not
specifically excluded. Because of the depth of the coverage provided, this policy form
usually costs more.
o HO-6 – Condominium Unit-Owners Form: The HO-6 will cover a unit-owner who
wishes to insure his or her property or to cover any items not insured by the
association’s policy. A unit-owner policy will pay for property damage to personal
belongings, wall, floor, and ceiling coverings, and any accessories not originally
installed in the unit for the same perils as the HO-3 form. It also provides personal
liability protection. An individual unit-owner policy is similar to homeowners’ insurance
and renters’ insurance.
Your condominium association should purchase a policy that covers the building,
including any common walls and grounds, and liability associated with common
properties. You have a right to examine the association policy.
o HO-8 – Modified Coverage Form: The HO-8 policy is typically written to insure
older homes or properties that qualify as registered landmarks or architecturally
significant structures. Although this policy does insure the dwelling structure and
personal property from the specific perils named on the HO-1 form, the HO-8 form will
cover only the cost of repairs or actual cash values and not the rebuilding costs.
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Many insurers offer special policy forms customized to insure mobile homes or
manufactured houses, and most of these policies are based on the perils covered by
HO-2 and HO-3 forms.
Your home may not qualify for one of the homeowners’ package policies; therefore, a
company may offer you limited coverage on your house. This coverage may be fire
and extended coverage, often called a dwelling fire policy (DF-1). Your home, and
only your home, would be covered for damage due to very specific perils or losses.
Table 2 – Homeowner Perils Chart
Perils Covered
Kind of Policy
Dwelling
Contents
HO-1 / HO-8
Basic
HO-2
Broad
HO-3
Special
HO-5
Open P
erils
HO-4 /
HO-6
DF-1
Fire or lightning
Windstorm or hail
Explosion
Riot or civil commotion
Aircraft
Vehicles
Smoke
Vandalism and malicious mischief
Theft
Breakage of glass constituting a part of the
building
Volcanic eruption
Loss of property removed from premises endangered
by fire or other perils
Falling objects
Weight of ice, snow, or sleet
Collapse of building(s) or any part thereof
Sudden and accidental tearing apart, cracking,
burning, or bulging of a steam or hot water heating
system or of appliances for heating water
Accidental discharge, leakage, or overflow of water, or
steam from within a plumbing, heat
ing, or air
conditioning system or domestic appliances
Freezing of plumbing, heating, and air conditioning
systems or domestic appliances
Sudden and accidental damage from artificially
generated currents to electrical appliances, devices,
fixtures, and wiring (TV and radio tubes not included)
All perils except flood, earthquake, war, nuclear
accident, and others specified in your policy. Check
your policy for a complete listing of perils not covered.
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OPTIONAL COVERAGES YOU MAY WISH TO CONSIDER
o Flood Insurance
Home insurance policies generally do not cover flood damage. Depending on
where your home is, you may qualify for flood insurance through the National
Flood Insurance Program (NFIP) offered by the Federal Emergency
Management Agency (FEMA) or through a private insurer. Contact an
insurance agent or company for more information. If your home is in a flood
plain, your mortgage lender will usually require you to buy flood insurance.
More information can be found in Nevada Consumer’s Guide to Flood
Insurance:
https://doi.nv.gov/Consumers/Homeowners-Insurance/Flood-Insurance/
o Earthquake Insurance
Damage from earthquakes or other seismic activity is not covered under most
home insurance policies. Earthquake insurance is available through most
insurance companies at an additional cost. It is normally issued as an
endorsement and attached to your home insurance policy. More information
can be found in Nevada Consumer’s Guide to Earthquake Insurance:
https://doi.nv.gov/Consumers/Homeowners-Insurance/Earthquake-Insurance/
o Guaranteed Replacement Cost Coverage
Guaranteed replacement cost coverage provides a broader coverage for your
home. It generally covers the full cost of replacing or repairing the home. To
obtain this type of coverage, you typically must meet specific underwriting
rules and conditions of the company. This may include increasing the amount
of your insurance on a monthly, quarterly, or yearly basis to keep up with the
inflation rate. Check with your insurance company or agent to determine if an
additional premium is required and if there are exclusions or conditions that
apply.
o Inflation Guard Endorsement
If the replacement cost of your home is increasing with inflation, your policy
limits must be periodically increased to maintain your coverage at 80% or
higher. Even though the amount of home insurance you carry is at least 80%
of your home replacement cost, this amount of coverage may not be enough
in the future. To aid you in keeping coverage at an adequate level, some
companies offer an “Inflation Guard Endorsement.” This endorsement will
allow your insurance company to automatically change your policy limit during
the policy period. Normally, the higher premium is not billed until the time of
renewal. Even if you have this endorsement on your policy, you should check
your coverage limits periodically to make sure you are adequately, but not
excessively, insured. Not all companies offer this endorsement, so check with
your agent or company if you are interested in purchasing it.
o Scheduled Personal Property Endorsement
This endorsement is sometimes called a “personal article floater.” A personal
article floater covers possessions such as jewelry, furs, stamps, coins, guns,
computers, antiques, and other items where the value of the item may exceed
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normal limits in your home insurance policy. A personal article floater lists
each article, gives a description of the article insured, and may require a
certified appraisal for each item insured. The policy is generally written as an
all-risk form and specifies excluded perils. Therefore, it provides coverage that
is broader than the coverage granted in the typical homeowners’ policy. There
is usually no deductible applied to this coverage.
o Increased Limits on Money and Securities
This endorsement increases the coverage on money, bank notes, securities,
deeds, etc.
o Secondary Residence Premises Endorsement
Home insurance coverage under this endorsement applies to a secondary
residence, such as a summer home. Remember that these secondary
residences are not automatically covered by the home insurance policy on
your primary or principal residence.
o Watercraft Endorsement
Applicable to small sailboats and outboard motorboats, this endorsement
extends personal liability and medical payments coverage as well as providing
limited physical damage coverage to the watercraft. If you own a watercraft,
discuss coverage options with your agent or insurance company, as broader
coverage may be provided under a different policy form.
o Theft Coverage Protection Endorsement
As a result of this endorsement, your theft protection is broadened. The
contents of your motor vehicle, trailer, or watercraft are covered without proof
of forcible entry. This endorsement applies only to forms HO-1, HO-2, HO-3,
and HO-4.
o Credit Card Forgery and Depositors’ Forgery Coverage Endorsement
Loss, theft, or unauthorized use of credit cards (with certain exceptions) is
covered by this endorsement. Also covered is the forgery of any check, draft,
promissory note, etc. – again, with certain exceptions. No deductible applies to
this endorsement.
WHAT AFFECTS HOME INSURANCE PRICES?
o Amount of Coverage: The amount of coverage you buy for your house,
contents, and personal liability will affect the price you pay.
o Local Fire Protection: Your home’s distance from a fire hydrant and the
rating of your local fire department are some of the attributes used in
determining the public protection class (PPC) of your home. PPC ranges from
1 (superior property fire protection) to 10 (no insurance recognition). Most
home insurers will generally rate PPCs 1 – 6 identically with PPCs 7 – 10
assigned a more adverse rating.
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o Type of Construction: The construction type of a structure, including the
type of roof, may vary according to the unique hazard exposures that may
impact a region, city, or location. The construction type may affect the price of
repairs or rebuilding in the event of a loss. For instance, frame houses usually
cost more to insure than brick houses due to their susceptibility to fire.
o Age of House: New homes may qualify for discounts. Some insurance
companies either may not insure very old homes or may offer a limited form of
coverage.
o Deductible Amount: Your choice of a higher deductible will reduce the price
for home insurance. However, you will be responsible for paying the
deductible amount in case of a loss or a claim.
o Discounts: Some insurers offer lower prices for such decisions as insuring
your home and car with the same company and installing deadbolt locks or
alarm systems. Check with your agent or insurer.
o Credit Reports: Many insurers use your credit history as a factor in
determining what price you will be charged for insurance. The use of credit
history varies from insurer to insurer and is not the same as the FICO score
used by lenders to make loan decisions. For more information on credit-based
insurance scoring, please see the FAQs that the Nevada Division of Insurance
developed regarding this practice: https://doi.nv.gov/Consumers/Credit-
Scoring-FAQs/
o Claims History: If you file a claim with your insurance company, even if the
loss was not your fault, this may contribute to an increase in your home
insurance premium. Some insurers forgive the first claim but you may lose the
benefit of any claims-free discount if offered by your insurer.
HOW TO SHOP SMART FOR INSURANCE
The key to comparison shopping is to know what insurance coverages you need and
then find out how much those same coverages will cost from a number of insurers.
Comparison shopping takes time, but it will save you money.
Different companies charge different rates for the same coverage. No one wants to
pay more for their home insurance than they absolutely have to. The only way you
can make certain you are not paying too much is by shopping around. Find out what
different insurers charge for identical products and services.
SEEK UNBIASED INFORMATION
Information is available to consumers from a number of unbiased sources. These
sources include public libraries, the Nevada Division of Insurance, consumer groups,
and consumer publications.
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Because the insurance industry, like many other industries, has developed many
words not commonly used by the public, you may need to find a good glossary or
dictionary of insurance terms from the public library or online.
You may also obtain a wide variety of information from the Nevada Division of
Insurance. The Division has personnel available to answer questions regarding home
insurance coverage.
WHERE TO SHOP
When you begin to contact insurers, there are a few things you should know about
how insurance companies market their products.
Most insurance companies and many agents advertise. Check the Internet, local
newspaper, and the yellow pages of the telephone directory for companies and
agents in your area. In addition, contact your neighbors, relatives, and friends for
recommendations on insurance companies and agents. Ask them about their
experience regarding price and service. In particular, ask them what kind of claim
service they have received from the companies they recommend.
Consumers often rely on their insurance agent or company to tell them what kind of
coverage they need. However, the ultimate responsibility to make sure you are
getting the right coverage at the right price is with you. Insurance agents are paid on
a commission basis.
Competition works if consumers shop for coverage.
PRICE QUOTATIONS
When shopping for home insurance, premium quotations are a useful tool for
comparison of different companies’ products. When asking for price quotations, it is
crucial that you provide the same information to each agent or company.
To give you an accurate quote, the agent or company will usually request the
following information:
o Description of your house;
o Distance from the nearest fire department and fire hydrant;
o Square footage;
o Security devices, smoke alarms, window locks;
o A picture of your home;
o The coverages and limits you want.
You should understand that not all insurance companies use insurance agents to sell
their product. Insurance companies generally use one of three methods to market
their product: 1) direct marketing; 2) independent agents; or 3) exclusive agents. The
type of marketing method selected may vary according to the consumer’s need for
services. Therefore, consumers should be aware of each of the three methods and
may want to consider them in their purchase decision.
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o Direct Marketing – Direct marketers sell insurance over the Internet, through
the mail, and by telephone. In some cases, consumers can save money with
direct marketers, because these companies do not have to pay insurance
agents commissions to sell their policies. Companies can pass along some of
these savings to the consumer. However, some consumers prefer to pay an
additional premium for the opportunity to have a local agent available to them.
o Independent Agents – If you decide to call agents for quotations, ask them
how many companies they represent. Independent agents represent several
companies; therefore, you can get quotes for more than one company from
one agent. This is considered an advantage by many consumers.
o Exclusive Agents – Some insurance companies sell coverage through
agents that only represent their company. These companies call their agents
an exclusive agency force. Exclusive agents offer you coverage from the
company they represent; therefore, you can only get a quote from one
company for each exclusive agent that you talk to.
Sometimes exclusive agents may work for a lower rate of commission than
independent agents. This is because companies do not have to give the agent an
incentive to write their product over another company’s product. The lower
commission structure, especially on commissions for renewal business, can
represent significant cost savings to the insurance company, and often a portion of
that savings is passed along to the consumer in lower premiums.
FOR YOUR PROTECTION
Once you have selected the insurance coverages you need and an insurance agent
or company, there are steps you can take to make certain you get your money’s
worth. Before signing an application for any insurance coverage in Nevada, contact
the Nevada Division of Insurance and verify that the company and the agent you are
dealing with are licensed in our state. It is illegal for unlicensed insurers to sell
insurance in Nevada. Business cards are not proof of a licensed insurance agent or
company. If you do business with an unlicensed agent or company, you have no
guarantee that the coverage you pay for will ever be honored.
The only exception to licensure requirements pertains to eligible surplus-lines
insurers, from which coverage may be available to homeowners who are unable to
find coverage on the admitted market after three declinations from authorized
insurers. Surplus-lines home insurance policies are often more expensive than
policies on the admitted market, and the insurer has greater flexibility in designing the
policy form and setting forth special conditions and/or exclusions. To look into
obtaining a home insurance policy from a surplus-lines insurer, a consumer should
contact a licensed surplus-lines broker. The brokers placing coverage with surplus-
lines insurers must still be licensed in Nevada, even though surplus-lines insurers
themselves are not required to be licensed. Visit the website of Nevada Surplus Lines
Association (NSLA) to find a list of licensed surplus-lines brokerages in Nevada:
https://nsla.org/
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Every state has a safety net to protect insurance consumers from financial loss in the
rare instance that a company becomes insolvent. This safety net is called a “guaranty
fund.” The guaranty funds are established by state law and are composed of licensed
companies in the state. They pay the claims of policyholders and other claimants in
the event an insurance company becomes insolvent. The money to pay the claims
against the insurance company comes from assessments made against all of the
insurance companies that are members of the guaranty fund. If you purchase
insurance from companies not legally doing business within this state, you will not be
protected by Nevada’s guaranty fund should the unlicensed company fail.
If you are contacted by an unlicensed agent or company, contact the Nevada
Division of Insurance immediately so that regulatory action can be taken. By doing
so, you may protect yourself and other Nevadans from being victimized.
You should be aware that a home insurance policy is a legal contract. It is written so
that your rights and responsibilities, as well as those of the insurance company, are
clearly stated. When you purchase home insurance, you will receive a policy. You
should read that policy and make certain you understand its contents. If you have
questions about your insurance policy, contact your insurance agent or insurance
company for clarification. Keep your policy in a safe place and know the name(s) of
your insurer(s). If you still have questions, call the Nevada Division of Insurance.
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CONTACT INFORMATION
As the ultimate consumer protection agency on insurance issues, the Nevada
Division of Insurance exists to serve you. We can be a source of unbiased
information and assistance to you.
If you have a complaint against an insurer, it is always best to contact your insurance
company first and attempt to settle the matter. Most insurance companies have
policyholder service offices set up precisely to handle such questions. If you still are
not satisfied, contact the Nevada Division of Insurance. The Consumer Services
section has specialists to help you with your insurance concerns. Although they
cannot represent you legally against an insurance company, they can make inquiries
on your behalf and investigate potential violations of insurance laws or regulations
based upon your complaint.
We encourage consumers interested in further information on home insurance
coverage to contact the Division of Insurance:
Northern Nevada Southern Nevada
State of Nevada State of Nevada
Department of Business & Industry Department of Business & Industry
Division of Insurance Division of Insurance
1818 College Pkwy., Suite 103 3300 W. Sahara Ave., Suite 275
Carson City, Nevada 89706-7986 Las Vegas, Nevada 89102
(775) 687-0700 (702) 486-4009
E-mail: [email protected] E-mail: cnsmsvlv@doi.nv.gov
Toll Free in Nevada: (888) 872-3234
Division of Insurance on the Web
doi.nv.gov