Homeowner’s Insurance 101

Homeowner’s Insurance is a form of property insurance designed to protect an individual’s home against damages to the house itself, or to possessions in the home. Homeowner’s Insurance also provides liability coverage against accidents in the home or on the property. Homeowner’s insurance rates will vary based on the coverage you select.

These are some general questions to ask the providers, so you are certain of the coverage you select:

1. What kind of homeowner’s insurance policy do I need (HO-1 thru HOA-8), and what and who is covered under the policy?

There are eight levels of homeowner’s insurance in the United States ranging from full homeowners insurance that covers everything in your home as well as all the contents. There is also a homeowners insurance specifically for condos, mobile homes,  renters, and your priceless items.

2. Does the policy cover replacement cost, and is it guaranteed replacement cost?

There’s a big difference in these two terms, you want a guaranteed replacement cost for your items no just replacement cost – the difference could be quite severe.

3. Are there any exclusions to the policy?

What is and isn’t covered in your home, specifically. Your policy should thoroughly outline everything that is covered. If you aren’t sure, ask!

4. Are there any limits on valuables such as computers, silverware, or jewelry?

If you own these items be sure to find out if they are covered.

5. Does my policy cover any water damage? What will it cover?

Most homeowners’ insurance policies will cover overflow water damage from flooding and are often not covered.

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6. Should I consider any optional or extra homeowners insurance coverage?

Flooding, hurricanes, .and sinkholes are often not covered, nor are your priceless paintings. There is optional homeowners’ insurance for these perils and items that are not covered with your insurance policy.

7. How much is my deductible? Can I save money by choosing a higher deductible?

Your premium (payments) will be less if you have a higher deductible in most cases. You have to weigh the options of having lower payments and a higher deductible versus having a lower and perhaps more affordable deductible.

8. Are there any safety features that I could install in my home that would save money on my policy and increase my protection (smoke detectors, alarm system, etc.)?

Most often, the answer is yes. Your insurance agent will be able to help you with these types of upgrades that could save you a lot of money in premiums. Also, be sure to ask your agent additional discounts regarding your 4-point inspection, wind mitigation report, etc.

9. Does the insurance company offer 24-hour claims service? How do I file a claim and what are my responsibilities with claims?

Finding out this information in advance will be helpful for you if you ever have to make a claim.

10. How much liability coverage do I need if something happens on or away from my property?

Liability coverage will protect you against lawsuits for property damage and injury. Liability pays for judgments and the cost to defend you in court. If you are not sure how much coverage you need, ask your agent. The standard home policy will provide $100,000 in coverage.

Have any more questions about homeowners insurance?

Text or call us now at 321-567-1202!

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