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HOME INSURANCE 101
Choosing the "Right" Homeowners Insurance
Homeowners insurance lets you sleep at night knowing you are protecting one of your most valuable assets…your home and its contents. That's assuming you are insured to the correct policy limit that fully rebuilds your home in a catastrophic loss.
However, since only one of three homes is insured properly, much care should be taken to know the correct policy limits to establish. We can help you do this.
If you insure for depreciated values, at claim time the insurance company deducts depreciation from repair costs. If you insure for the cost to rebuild, the insurance company pays the full repair costs at claim time.
Always insure for at least 100% of the estimated new replacement cost. Paying the extra premium is far easier than facing thousands of dollars in losses in out-of-pocket from either not having enough insurance to rebuild if your home is destroyed or having your repair costs substantially depreciated on partial losses.
Ask for "extended dwelling limit options" that can provide 125% or 150% increase to your policy limits.
Accurately determining the correct policy limit to fully rebuild your home is easier said than done. And, it easily could be the most important insurance "number" to know. Spending the time to talk to your agent about this concept is critically important.
Knowing exactly what your homeowners policy covers and what is excluded helps you figure out if you need to purchase special coverage for the exclusions.
It's a good idea to make your homeowners liability limits equal to your automobile limits. Smart buyers choose the liability limits needed to purchase a personal umbrella liability policy extending liability limits for both home and auto - adding thousands of protection dollars ($1 million or more) at minimal cost (around $15 and higher a month).
We recommend you choose the highest deductibles you can comfortably afford. This strategy helps you save money you can use to pay for the extra liability coverage you need.
Find out if discounts are available such as: multi-policy, new home, gated community, age 55 and over, home renovation, tile roof credit, and protective device credits.
Don't forget flood insurance is a separate policy written in addition to homeowners insurance. There is a waiting period. Ask yourself, "Is going without flood insurance worth the financial risk?"
The Fred Simmons Insurance Agency is ready to help you choose the homeowners insurance coverage most suited for you. "Insurance of Value" - the "smart" coverage for the "right" price - that's our goal for you!
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