Homeowners Insurance

  Because everyone's needs are not the same, it is best to consult your agent to help assess your needs and find the insurance policy that is right for you.

What is Homeowners insurance?

Homeowners insurance provides financial protection against disasters. A standard policy insures the home itself and the things you keep in it.

Homeowners insurance is a package policy. This means that it covers both damage to your property and your liability or legal responsibility for any injuries and property damage you or members of your family cause to other people. This includes damage caused by household pets.

Damage caused by most disasters is covered but there are exceptions. The most significant are damage caused by floods, earthquakes and poor maintenance. You must buy two separate policies for flood and earthquake coverage. Maintenance-related problems are the homeowners' responsibility.

Why do you need homeowners insurance?

It is really all about protecting yourself financially if something unexpected happens to your home or possessions. That's important because chances are your home is likely one of your largest investments.

• If your home was destroyed by fire or damaged by a natural disaster, you'd need money to repair or replace it.
• If a guest in your home is injured, liability protection and medical coverage help pay expenses.
• If you are a victim of theft and vandalism, it can reimburse you for your loss or pay for repairs.
• If you are still paying for your home, your lender will require insurance.

It is important to know that homeowners insurance is meant to cover unexpected damage, not routine maintenance. Ask your agent to talk about what is covered and be sure to read your policy so you know exactly what's included and what is not.

What are the three basic types of home insurance?

Home insurance is broken down into property and liability coverage. When it comes to property coverage, there are three main types of coverage that you can choose from, including:

·       Replacement cost—Helps cover the cost of repairing or replacing property at the same value. This is based on the replacement cost versus cash value.

·       Actual cash value—Helps pay the owner or renter the replacement cost minus the factored in depreciation.

·       Extended replacement costs—Can help pay more than the coverage limit if costs have gone up due to construction. The cap for coverage is typically 25% of your limit or the amount your insurance company will pay for a situation.

How much does home insurance usually cost?

The cost of your home insurance is going to vary. There are factors that can impact your costs, such as:

·       Where you live

·       Price of your home

·       Amount of coverage

·       Home age and condition

·       Home security

·       Credit history

·       Additional coverage

·       Your deductible

To receive a quote, contact your agent today and discuss the factors that could influence your premium.

Things to consider and questions to ask your agent

Here are few things to discuss with your agent that will influence your decisions.

• How much will it cost to rebuild my house and replace my belongings if they are damaged or destroyed? (Ask your agent to talk you through your home's features and the things you own so you can make an informed decision about coverage.)
• Does the insurance company have a good reputation for customer service? Is it known for paying claims fairly and promptly?
• What discounts are available? (Ask about multiple policy, security system and fire resistance discounts.)
• What's the process for filing and settling a claim? (Ask who to call and what happens after you file a claim.)