Home Owners Insurance

When most people think of their most valuable asset their home comes to mind. This is why it is so important to keep the proper insurance in place to cover the possibilities of costly damage.

Since not all policies are identical, our job is to see that you understand the coverage available which allows you to make the best choices.

  • HomeownersCoverage A (Dwelling) This is the coverage for the actual structure.
  • Coverage B (Other Structures) Coverage for buildings other than the home.
  • Coverage C (Contents) your personal belongings.
  • Coverage D (Loss of Use) Additional expenses you incur due to a loss such as the cost for staying in a hotel during the repair.
  • Coverage E (Liability) used to pay expenses you are responsible for.
  • Coverage F (Medical Payments) used to pay medical expenses that occur on your property regardless of your negligence.

There are many optional endorsements to pick up coverage for possible losses that are excluded from the standard homeowners.

Some of the more common endorsements are:

  • Contents Replacement Cost
  • Home Replacement Cost
  • Water Back Up and Sump Pump Failure
  • Earthquake
  • Scheduled Collections such as jewelry, guns or coins.

We are often asked, “Why do I have to carry so much coverage on my house when it is worth much less?”  The answer is found by understanding the difference between “Market Value” and “Replacement Value”.  Market Value is simply the price someone is willing to pay for the property.  Replacement Value is what it cost to replace the lost or damaged property.

If you want to have your property replaced without the deduction of depreciation they you must carry “Replacement Cost” coverage.  When you carry this coverage you also need to insure your property at the proper replacement value to avoid a penalty.  Here is an example:

Robert buys a house for $100,000 but the replacement value is $200,000.  He elects to only carry $100,000 in coverage on his house which is 50% of the appropriate amount, therefore any claim he has will be paid at 50% minus his deductible.