If you’re like most folks, your home is your most valuable possession and something that you want to protect. Homeowners insurance not only protects the structure and contents of your home, but provides liability coverage if someone is injured on your property. There are a few factors that must be considered and evaluated before choosing your homeowners insurance coverage. You will want to discuss each of these with your agent at the time of purchasing homeowner’s insurance.
Home insurance coverage protects you from a loss you most likely cannot afford. It ensures that your assets are protected from the perils of: fire and lightning; theft; vandalism; smoke damage; freezing; building collapse; accidental discharge, leakage or overflow of water or steam, and more.
Placing the proper amount of insurance on your home is your responsibility. It is important for you to have enough coverage on your home to allow you to completely rebuild your home at current building costs in the event your home is totally destroyed by a fire or windstorm. Determining the proper amount of coverage can be difficult but we RCE’s or “Replacement Cost Estimators” that assist you in determining the true replacement cost of your dwelling and adjacent structures.
Replacement Cost (RC) – what you would pay to rebuild your home based on present day construction costs. Replacement cost is different from “market value” or “appraised value”. RC does not include the value of your land, because your land can never be destroyed. In order to have RC on your dwelling, it must be insured for at least 80% of its true RC at the time the loss occurs.
Actual Cash Value (ACV) – in the absence of Replacement Cost, you have an Actual Cash Value insurance policy. In the event of a loss the company will pay the depreciated value of your damaged property. The amount your loss is reduced between Replacement Cost and Actual Cash Value is called the “Coinsurance Penalty”. Again, in order to avoid a Coinsurance Penalty, it is important not to underinsure your home.
Deductibles – help to reduce your premium cost, but also limit the amount you may recover in event of loss. The deductible is always applied to the first portion of any loss. You should carry as high a deductible as you can afford.
Endorsements – policy add-ons that cover special items or increase your coverage. Common endorsements include coverage for residential glass, jewelry, fine arts, camera equipment, coin or stamp collections, computer/electronic equipment, an in-home office, and satellite dishes.
There are a number of discounts available on your homeowners insurance. Discounts vary by company but we want you to receive any and all discounts available to you. For complete details about homeowner’s insurance coverages and options, please contact us so we can gather all the information needed to find the best policy available for you.
Our dedicated team of insurance experts will go the extra mile for you. With experienced customer service representatives for both commercial and personal lines, you will always have someone to answer your questions. We are here when you need us! Our agency’s goal is to provide our customers with unparalleled protection and affordability.
We have a relationship with several companies, including Auto-Owners, Allied, ACUITY, Colorado Casualty, Hartford, Safeco, Travelers, Progressive and more. We also have an eagerness, and willingness to answering your questions. Click here for a free quote.
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