If you own a home – be it a single-family home, townhome or condo, or vacation home, you also probably own homeowners insurance not because it’s required by law, but because it’s required by your mortgage company. And, if you own your home outright and don’t have a mortgage, you should have homeowners insurance anyway as it protects you and one of the most important – and expensive – things you own.
To ensure you have the policy and protection you need for your property, it’s a good idea to work with a licensed insurance agent.
Homeowners insurance covers a standard list of perils, or reasons for loss, which typically include:
While it’s important to understand what’s covered in your homeowners policy, it’s just as important to understand what’s not. Some perils that could be excluded in basic coverage include:
Damage due to flooding rains is not included and would be covered under a separate flood insurance policy. And, homeowners in earthquake-prone areas are able to purchase a separate earthquake insurance policy.
There are other common extra policies that you can include with your coverage, including:
Guaranteed Replacement Cost Coverage – pays to rebuild your home completely, even if the cost to do so is greater than your policy limits.
Inflation Guard – automatically raises your dwelling coverage limit annually in line with inflation.
Scheduled Personal Property – sometimes referred to as a personal article floater, this is an endorsement that covers property such as, jewelry, furs, coins, stamps, guns, computers and other items that could exceed the limits in your homeowners policy.
Personal Umbrella Liability Insurance – increases your liability coverage above the limits available in any of your primary policies such as homeowners, auto and boat insurance. This policy covers your assets and can be extended to other excluded coverages, such as false arrest, libel, slander and invasion of privacy.
In addition, you want to make sure you have liability insurance. This comes into play if someone gets injured on your property, be it a contractor working on your home, or a friend who’s over for dinner. Having ample liability insurance will protect you financially.
The underwriting process determines your premium – or how much you pay for your insurance. Many factors are taken into consideration, including:
The deductible is your out-of-pocket expense on a claim before the policy pays for a loss. This amount is meant to be reasonably low and affordable and can vary based on how much you want to save on your monthly premiums.
Whether you are purchasing a new home or want to review the current homeowners policy on your existing home, you have many different options. We would love the opportunity to walk you through what those options are and discuss the best solution for you.
Contact us today. We are here to help.