|
Request an Homeowner
Insurance Quote.
Homeowners
insurance is one of the most valuable risk management
tools you can purchase. Your policy not only protects you
largest asset but also provides coverage in case of legal
action against you.
Basics
Homeowners Insurance is a very comprehensive product and
can have many features and riders. Below is an explanation
of the basic coverages in plain English. Remember, this is
just a general description and not policy language.
Homeowners Insurance is broken down into the following
Coverage sections:
|
Coverage
A
|
Building:
This coverage is used to protect the physical
structure. Your home should ideally be insured
to 100% of it’s Replacement
Cost.
|
|
Coverage
B
|
Other
Structures:
Used to protect unattached structures such as a
shed, detached garage or an inground swimming
pool.
|
|
Coverage
C
|
Contents:
This
coverage is for your household belongings.
|
|
Coverage
D
|
Loss
of Use:
This pays for you and your family to stay in a
hotel if your home becomes uninhabitable due to a covered
loss.
|
|
Coverage
E
|
Personal
Liability:
Coverage for Bodily Injury or Property Damage
that an insured is found to be liable.
|
|
Coverage
F
|
Medical
Payments:
Coverage for medical payments to another person
regardless of the negligence of an insured
person. |
Replacement Cost
Replacement Cost value is often confused with the Market
or Appraised value of your home. Homeowners Insurance
typically insures your home not your land. Replacement
cost coverage contemplates the cost to replace your home
with like kind and quality materials. Market and Appraised
values are used for different reasons but are often
incorrectly used to determine insurance policy limits.
Tips on Purchasing a Policy
-
Always be sure you have an agent or company calculate
the Replacement Cost value of your home - This should
be done using actual characteristics of your home. We try
and visit each and every home we insure to maximize
accuracy of insurance values.
- Inquire about discounts
- They can range from 2% to
15% depending on the presence of smoke detectors, fire and
burglar alarms. Monitored alarm systems go a long way in
helping to prevent or detect a potential loss.
- Purchase Replacement Cost Coverage
- On your
belongings and your home. This will allow for a new for
old replacement of covered items.
- Buy Personal Liability Limits that are in line with
your Personal Assets - So often customers choose
liability limits based on what sounds good or is cheaper.
This is the most inexpensive portion of the policy so buy
what you need. Consider a Personal Umbrella policy to
extend your coverage to 1 million or more.
- Consider scheduling your valuable items on a rider and
not in your Contents limit - You may get broader
coverage with no deductible and not dilute your Coverage
C limit.
- Use larger deductibles to pay for better
coverage -
A deductible is a predictable amount you must pay but
going without coverage or underinsuring to save money can
be very unpredictable. Buy insurance to transfer risk not
add to it. If you purchase insurance for catastrophe
purposes consider $1000 or more for a deductible.
|
