Homeowner Insurance

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.

Types of Homeowners Insurance

There are essentially five kinds of Homeowners Insurance policies on the market. Each one has coverages that may be unique depending on the residence being insured:

Homeowners -traditionally cover owner occupied dwellings with limited rental exposures.

Renters -cover the contents of an apartment with little to no coverage for the building itself.

Condominium -have characteristics specifically designed to cover building and contents.

Mobile Home -designed specifically for these types of residences

Dwelling Fire -can be used for owner occupied or rental properties depending on the number of renters.

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. The items below will vary based on the policy type you purchase but these general terms can get you started.

- Building: This coverage is used to protect the physical structure. Your home should ideally be insured to 100% of it’s Replacement Cost.

Coverage A

- Other Structures: Used to protect unattached structures such as a shed, detached garage or an inground swimming pool.

Coverage B

- Contents: This coverage is for your household belongings.

Coverage C

- 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 D

- Personal Liability: Coverage for Bodily Injury or Property Damage that an insured is found to be liable.

Coverage E

- Medical Payments: Coverage for medical payments to another person regardless of the negligence of an insured person.

Coverage F

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.

What to Expect

We will collect information on you as well as your home. The following information will be needed to accurately quote your policy:

Year Built

Square Footage

When were the last updates to your Roof, Heating system, Plumbing and Electric

Are there fire hydrants within 1000 feet of your home?

How far away is the fire department?

Be able to identify all deeded owners to the property

Be sure any mortgagees are listed correctly with loan numbers

Is your insurance billed via your escrow account?

Have your latest insurance policy handy

If you decide to buy we will need pictures of your home and if your insurance is billed to your escrow account your lender will need an updated Binder of Insurance. You can also expect a Replacement Cost evaluation of your home as part of the process. This is a general estimate only but will be helpful in determining appropriate coverage.

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.