Home Insurance

Your home is one of your biggest assets, and it’s important to do all that you can to protect it. We’ll help you plan for the unexpected with insurance coverage that’s just right for you and your family.

Your home is both a valuable asset and the center of your life, so it’s extra-important to cover every risk with homeowners insurance. Get the right policy and you’ll take care of the small and large risks related to owning a house at the same time.

For example, a devastating fire could result in not just the total loss of your home, but financial ruin. Without adequate home insurance you could be left with no way of raising the funds to pay off the balance of the mortgage. Of course, homeowners insurance may also protect you from more common house-related incidents like pipe leaks, burglary of personal possessions and much more.

Homeowner’s Insurance Policies Cover:

• Your Residence – they call this the “Dwelling” .. it is the house and those items attached to it like a deck or attached garage
• Detached Structures - Garages, workshops, fences, dog kennels, garden sheds etc…
• Your Belongings - furniture, clothing, household items, your stuff…..but not motorized vehicles unless they are used to maintain the house…like a lawn mower
• Loss of Use/Additional Expense -  pays for food and a place to stay when you are displaced from your home due to a claim.
• Personal Liability – pays for an attorney to defend you (and an allowance for damages) if you are sued for property damage or bodily injury like a dog bite or slip & fall.
• Medical Expenses  - pays for medical bills to someone whom is not you, your spouse, or resident relatives if they get hurt on your property.

• Optional riders – you can add extra coverage for jewelry and other high value items.

*Except for dwelling and structures, a Renter’s Policy has very similar benefits and starts as low as $100 per year!

Little-known facts about Homeowners Insurance

There are many things about insuring a home that most consumers aren’t aware of. We are here to make sure you avoid potential problem areas, including:

• Most policies will not cover sewer/sump backup unless you purchase a special endorsement
• Damages caused by surface water or water that flows below the surface of the ground aren’t usually covered – this is called flood or seepage.
• A standard homeowners policy does not include Flood Insurance
• A standard homeowners policy only covers jewelry and other valuables up to set limits if the loss resulted from one of the perils named on the policy.  You may need a rider or extra coverage to adequately insure these items.
• IMPORTANT: You can combine your Home and Auto policies (and others) for even more savings.

2 Types of Contents Coverage for Home Insurance

There are two types of coverage for your contents under your Homeowners Insurance Policy: Actual Cash Value and Replacement Cost Coverage.

We always recommend replacement cost coverage on your contents.

• Under Actual Cash Value, the insurance will cover the cost of replacing the property minus an allowance for depreciation. If you have, say, older furniture, that allowance could be quite significant. Unless your policy specifically says it provides replacement cost coverage, the coverage is for actual cash value.

• Under Replacement Cost Coverage, the insurance company will cover the cost of replacing property that is damaged or stolen, up to a maximum dollar amount. Replacement cost is better for you, the homeowner.

How much should you insure your home for?

• To insure your home appropriately, you want to make sure that you have enough coverage to rebuild your home in case it gets completely destroyed. That means the limit on your policy should be equal to the cost to replace your home.   The policy is intended to cover the cost to rebuild your home…not just its value.

The replacement value is calculated on a “cost per square foot” basis:  take the square footage of your house and multiply it by the average square foot building rate (based on the quality of the construction materials used) in your area.

Your insurance agent will be able to help you calculate the replacement value.