Author: Home & Dime Editorial Team

  • Life Insurance Beneficiaries Explained

    A life insurance beneficiary is the person or entity who receives the death benefit when you die. You should name both a primary and a contingent (backup) beneficiary, and review them after major life events.

    Key Decision

    By the Home & Dime Editorial Team · Updated 2026

    Primary vs. contingent

    • Primary receives the benefit first.
    • Contingent receives it if the primary can’t.

    Keep it current

    Update beneficiaries after marriage, divorce, or a new child — the policy overrides your will.

    Common exclusions

    • Naming a minor directly (use a trust or custodian)
    • Forgetting to update after divorce

    Tips

    • Name both primary and contingent beneficiaries.
    • Update after major life events.
    • Use a trust for minor children.

    Frequently asked questions

    Can I have multiple beneficiaries?

    Yes — you can split the benefit by percentage.

    Does my will override the policy?

    No — the beneficiary designation controls.

    Related guides

    Sources: Insurance Information Institute (iii.org); Consumer Financial Protection Bureau; FEMA; state Departments of Insurance. General information, not insurance advice.

    Part of our Life Insurance guide

    ← Life Insurance: full guide · All life insurance guides · Premium estimator · Glossary

  • Does Life Insurance Cover Accidental Death?

    Yes — accidental death is covered by standard life insurance like any other cause. You can also add an accidental death and dismemberment (AD&D) rider that pays an additional benefit for accidents.

    Usually Covered

    By the Home & Dime Editorial Team · Updated 2026

    Standard coverage

    A regular policy pays the death benefit whether death is from illness or accident.

    AD&D rider

    Pays an extra amount (often double) specifically for accidental death, and partial benefits for certain injuries.

    Common exclusions

    • Deaths from illegal acts or intoxication (may be excluded)
    • Deaths during the contestability period from misrepresentation

    Tips

    • Confirm whether you want an AD&D rider.
    • Disclose risky hobbies honestly.
    • Keep beneficiaries up to date.

    Frequently asked questions

    Is AD&D worth it?

    It’s cheap but narrow — a full policy covers more.

    Is accidental death covered without a rider?

    Yes — standard policies cover it.

    Related guides

    Sources: Insurance Information Institute (iii.org); Consumer Financial Protection Bureau; FEMA; state Departments of Insurance. General information, not insurance advice.

    Part of our Life Insurance guide

    ← Life Insurance: full guide · All life insurance guides · Premium estimator · Glossary

  • Is There a Flood Insurance Waiting Period?

    Yes — most NFIP flood policies have a 30-day waiting period before coverage takes effect, which is why you can’t buy it right before an approaching storm. Some exceptions apply.

    30-Day Wait

    By the Home & Dime Editorial Team · Updated 2026

    Why it exists

    The waiting period prevents people from buying coverage only when a flood is imminent.

    Exceptions

    • Buying in connection with a new mortgage (often effective immediately).
    • Some map-change situations (shorter waits).

    Common exclusions

    • Losses during the waiting period
    • Coverage bought as a storm approaches

    Tips

    • Buy well before hurricane season.
    • Don’t wait for a forecast.
    • Ask about exceptions when closing on a home.

    Frequently asked questions

    Can I skip the wait?

    Only in specific cases like a new mortgage.

    Why can’t I buy before a storm?

    The 30-day wait prevents it.

    Related guides

    Sources: Insurance Information Institute (iii.org); Consumer Financial Protection Bureau; FEMA; state Departments of Insurance. General information, not insurance advice.

    Part of our Flood Insurance guide

    ← Flood Insurance: full guide · All flood insurance guides · Water damage calculator · Glossary

  • How Much Flood Insurance Do I Need?

    You generally need enough flood insurance to cover your home’s replacement cost and the value of your belongings. NFIP caps coverage at $250,000 for the building and $100,000 for contents; private policies can go higher.

    Depends on Value

    By the Home & Dime Editorial Team · Updated 2026

    Building coverage

    Aim to match your home’s rebuild cost, up to the NFIP cap or higher via private flood insurance.

    Contents coverage

    Purchased separately — estimate the value of your belongings.

    Common exclusions

    • Coverage above NFIP caps (needs private insurer)
    • Living expenses (NFIP doesn’t include them)

    Tips

    • Insure to rebuild cost, not market value.
    • Add contents coverage separately.
    • Consider private flood for higher limits or living expenses.

    Frequently asked questions

    What are the NFIP limits?

    $250k building, $100k contents.

    Can I get more coverage?

    Yes — through private flood insurers.

    Related guides

    Sources: Insurance Information Institute (iii.org); Consumer Financial Protection Bureau; FEMA; state Departments of Insurance. General information, not insurance advice.

    Part of our Flood Insurance guide

    ← Flood Insurance: full guide · All flood insurance guides · Water damage calculator · Glossary

  • Does Flood Insurance Cover Mold?

    Yes — flood insurance covers mold that results from a covered flood, as long as you take reasonable, timely steps to dry out and mitigate. Mold from your own delay or neglect may be denied.

    Usually Covered

    By the Home & Dime Editorial Team · Updated 2026

    What’s covered

    • Mold growth directly caused by covered floodwater.
    • Removal when you mitigate promptly.

    Common exclusions

    • Mold from failing to dry out the property
    • Mold from humidity unrelated to the flood
    • Mold you could have reasonably prevented

    Tips

    • Document the flood and mold with photos.
    • Begin drying and mitigation immediately.
    • Keep receipts for mitigation costs.

    Frequently asked questions

    Will delay hurt my claim?

    Yes — prompt mitigation is expected.

    Does homeowners cover flood mold?

    No — only flood insurance covers flood-caused mold.

    Related guides

    Sources: Insurance Information Institute (iii.org); Consumer Financial Protection Bureau; FEMA; state Departments of Insurance. General information, not insurance advice.

    Part of our Flood Insurance guide

    ← Flood Insurance: full guide · All flood insurance guides · Water damage calculator · Glossary

  • Flood Insurance vs. Water Damage Coverage

    These cover two different things. Your homeowners policy’s water damage coverage handles sudden internal problems like a burst pipe. Flood insurance handles rising external water — something no homeowners policy ever covers.

    Two Different Things

    By the Home & Dime Editorial Team · Updated 2026

    Homeowners water damage

    • Burst pipes and appliance overflows.
    • Storm rain through a covered roof breach.

    Flood insurance

    • Rising water, storm surge, and overflowing rivers.
    • Sold via the NFIP or private insurers.

    Common exclusions

    • Assuming homeowners covers flooding (it never does)
    • Sewer backup without an endorsement
    • Gradual leaks

    State considerations

    In flood-prone states (Florida, Louisiana, Texas), the gap between these two is where many uninsured losses happen — flood insurance is essential there.

    Frequently asked questions

    Does homeowners insurance cover any flooding?

    No — never. You need separate flood insurance.

    What’s the difference?

    Homeowners = sudden internal water; flood = rising external water.

    Related guides

    Sources: Insurance Information Institute (iii.org); Consumer Financial Protection Bureau; FEMA; state Departments of Insurance. General information, not insurance advice.

    Keep exploring

    Homeowners coverage · Auto coverage · Deductible calculator · Glossary

  • Homeowners vs. Landlord Insurance

    Homeowners insurance covers a home you live in; landlord insurance (a dwelling or DP-3 policy) covers a property you rent to tenants, with added protections like rental-income loss and landlord liability.

    Different Policies

    By the Home & Dime Editorial Team · Updated 2026

    Homeowners insurance

    • For owner-occupied homes.
    • Covers structure, your belongings, liability, loss of use.

    Landlord insurance

    • For rental properties.
    • Covers the structure and landlord liability.
    • Adds loss of rental income; does NOT cover tenants’ belongings (they need renters insurance).

    Common exclusions

    • Using a homeowners policy on a rental (can void coverage)
    • Tenants’ belongings (their renters policy)
    • Normal wear between tenants

    State considerations

    Renting out a home on a standard homeowners policy can lead to denied claims — insurers require a landlord policy for tenant-occupied properties.

    Frequently asked questions

    Can I use homeowners insurance on a rental?

    No — you need landlord insurance once tenants move in.

    Does landlord insurance cover tenants’ stuff?

    No — tenants need their own renters insurance.

    Related guides

    Sources: Insurance Information Institute (iii.org); Consumer Financial Protection Bureau; FEMA; state Departments of Insurance. General information, not insurance advice.

    Keep exploring

    Homeowners coverage · Auto coverage · Deductible calculator · Glossary

  • What Is Liability Car Insurance?

    Liability car insurance covers the other party’s injuries and property damage when you cause an accident. It’s the minimum coverage required to drive in almost every state — but it does not cover your own car or injuries.

    Legally Required

    By the Home & Dime Editorial Team · Updated 2026

    Two parts

    • Bodily injury liability — others’ medical costs.
    • Property damage liability — others’ vehicle and property.

    What it doesn’t cover

    Your own car (needs collision) and your own injuries (needs MedPay/PIP).

    Common exclusions

    • Your own vehicle damage
    • Your own injuries
    • Damage above your limits (you pay the rest)

    State considerations

    Every state sets its own minimum liability limits; state minimums are often too low to cover a serious accident.

    Claim tips

    • Carry more than your state minimum if you have assets.
    • Add collision/comprehensive to protect your own car.
    • Consider an umbrella policy for extra liability.

    Frequently asked questions

    Is liability enough?

    It’s the legal minimum, but often too low — add coverage for your own car and higher limits.

    Does it cover my car?

    No — that’s collision and comprehensive.

    Related guides

    Sources: Insurance Information Institute (iii.org); Consumer Financial Protection Bureau; FEMA; state Departments of Insurance. General information, not insurance advice.

    Part of our Auto Insurance guide

    ← Auto Insurance: full guide · All auto insurance guides · Deductible calculator · Glossary

  • What Is Rental Reimbursement Coverage?

    Rental reimbursement is an optional coverage that pays for a rental car — up to a daily and total limit — while your vehicle is being repaired after a covered collision or comprehensive claim.

    Optional Add-On

    By the Home & Dime Editorial Team · Updated 2026

    How it works

    • Applies after a covered claim (not routine maintenance).
    • Pays a daily cap (e.g., $30–$50) up to a total limit.

    At-fault crashes

    If another driver caused the crash, you may get a rental through their liability insurance instead of using this add-on.

    Common exclusions

    • Rentals during routine maintenance
    • Costs above your daily limit
    • Non-covered claims

    State considerations

    Availability and limits are consistent across states; choose a daily limit that matches typical rental prices.

    Claim tips

    • Add it if you rely on your car daily.
    • Pick a daily limit near local rental rates.
    • For at-fault crashes, claim through the other driver’s insurer.

    Frequently asked questions

    Is a rental automatically covered?

    No — you need this add-on or an at-fault other party.

    Does it cover maintenance rentals?

    No — only covered-claim repairs.

    Related guides

    Sources: Insurance Information Institute (iii.org); Consumer Financial Protection Bureau; FEMA; state Departments of Insurance. General information, not insurance advice.

    Part of our Auto Insurance guide

    ← Auto Insurance: full guide · All auto insurance guides · Deductible calculator · Glossary

  • What Is Diminished Value in a Car Insurance Claim?

    Diminished value is the reduction in your car’s resale value after it’s been in an accident, even after quality repairs. You may be able to recover it from the at-fault driver’s insurer through a diminished value claim.

    Sometimes Recoverable

    By the Home & Dime Editorial Team · Updated 2026

    Why it happens

    A car with an accident history is worth less than an identical clean-history car, even repaired well.

    Recovering it

    File a diminished value claim against the at-fault driver’s insurer, backed by an appraisal. Your own insurer usually won’t pay diminished value on your own policy.

    Common exclusions

    • Accidents you caused (your own insurer usually won’t pay)
    • Older or low-value vehicles
    • States that don’t recognize the claim

    State considerations

    Diminished value claim rules vary widely by state — some allow it against at-fault insurers, others limit it.

    Claim tips

    • Get a professional diminished value appraisal.
    • Document the car’s pre-accident condition.
    • File against the at-fault party’s insurer.

    Frequently asked questions

    Can I claim it against my own insurer?

    Usually not — typically only the at-fault driver’s insurer.

    How is it calculated?

    Via an appraisal comparing pre- and post-accident value.

    Related guides

    Sources: Insurance Information Institute (iii.org); Consumer Financial Protection Bureau; FEMA; state Departments of Insurance. General information, not insurance advice.

    Part of our Auto Insurance guide

    ← Auto Insurance: full guide · All auto insurance guides · Deductible calculator · Glossary