Homeowners Insurance

Typical homeowners insurance covers your dwelling, medical payments to others, other structures and contents, the house, its contents, additional living expenses, loss of use (due to fire), personal liability claims against the policyholder and other members of the household and may cover against other losses. When you purchase homeowners insurance:
  • Read your homeowners insurance policy and your renewal declarations carefully because anything promised verbally or representations not documented in writing can be difficult to prove.
  • Compare prices, features, and reputation
  • Don’t ask for "the best homeowners insurance coverage." Compare homeowners insurance limitations on your own to determine the best product for you.
  • Because each homeowners insurance company’s loss experience differs, the rates will also.
  • Be careful your home is not insured for amounts inadequate for rebuilding (inadequate insurance-to-value).
  • Your dwelling limit should be the amount it would cost to replace your home, determined by the cost of the materials and labor involved in rebuilding your home.
  • Don't insure your home for the purchase price or the current market value.
  • Ask if building upgrade/code changes is included in your homeowners insurance coverage.
  • When setting your contents coverage on your homeowners insurance policy, be sure to take into account everyday items like books, clothing, and appliances, etc.
  • Actual cash value is the fair market value of your home (not nessasarily the relacement cost)
  • A homeowners insurancepolicy cannot be sold as a "guaranteed replacement cost" policy unless it will pay to completely rebuild the home.
  • Some types of replacement cost homeowners insurance policies will pay your policy limits, plus a certain percentage above those limits.
  • Without building code upgrade (ordinance or law) coverage, your insurance company may not pay for changes you may need to make to the structure of your home to bring it up to current building codes.
  • Ask your agent if limits on the homeowners insurance are automatically reviewed or increased.
  • When you get a new homeowners insurance policy, don’t file it without checking to see that the coverages, limits, premium, and other information is correct.
  • Keep an inventory of personal property (belongings, furniture, etc.), the dates purchased, and the price.
  • Take pictures of important and valuable items for your homeowners insurance policy.