Home Owners Insurance

Your home may be your most valuable asset! One of the biggest investments you will make in your lifetime. In many cases most people take a hands-off approach and just purchase the coverage your lender or Insurance agent recommends. Here are some important things to know about Homo Owners Insurance and how you can be better prepared for anything that comes your way!

1.) Dwelling and Outbuilding Protection – Replacement Cost

Make sure to go over your policy and verify that you have Replacement Cost as opposed to Actual Cash Value. The actual value of your home may not be enough to cover the cost to rebuild the home and all other damaged outbuildings if there is a loss.

Inflation and Sales Tax have an impact on the cost of material and labor across the nation and beyond. Making sure that you will not have to sacrifice on the quality and size of the replacement is the whole reason you have insurance in the first place!! Make sure Replacement cost is updated at least once a year!

2.) Personal Liability Coverage (Home Business)

Personal or Home Business Liability Insurance covers against claims made for personal and property damage both on, and in most cases, off the premises.

Having the proper Liability limits is also something to keep in mind. The idea is to cover your assets and your income from any judgements made against you. It is always best to talk to your agent about a Liability Umbrella that will extend your limits of Liability above and beyond your underlying home and auto liability limits for that extra layer of protection.

3.) Personal Property – Content

Make sure to have a very detailed inventory of your personal property. You work hard for the things you have so it is worth the extra effort to hand in a detailed inventory if you ever have to file a claim. Electronics, Furniture, Instruments and Memorabilia are all things that have VALUE!! If you need additional coverage for things like Fine Art and Jewelry you may be able to “Schedule” those items on your policy or get an additional policy that will cover them if you cannot do so on your homeowners. Keep in mind that there will be additional cost involved to protect High Value items and you will have a separate deductible in most cases.

4.) Other Coverages

Many carriers are offering additional coverages that may be appropriate when choosing the best policy type. Usually, they will offer you an upgraded version of the policy that will cover a checklist of other items that would otherwise have no coverage. Here are some examples.

Equipment Breakdown- Covers all the equipment in the house like the HVAC system, radiant heating, cooling, sump pump, some water filtration systems, and any other system that the house needs to function properly.

Business Insurance-Some carriers are offering additional coverage for home-based businesses. These coverages are limited so it is best to ask your agent for details.