Home Insurance

Most insurance companies will complete an assessment of your home based on size, number of rooms and interior and exterior materials. These estimates can vary from company to company but generally are fairly accurate as they use up to date information on the cost of materials and labor in your area. Usually, you will be required to insure your home at this replacement cost estimate amount.

The deductible is the portion that you will pay before your insurance company starts to pay. Deductibles are adjustable, and you can choose lower or higher options to fit your specific needs. They can be a listed dollar amount or a percentage of your dwelling limit. Depending on where you live, insurance companies may require that you carry separate higher deductibles for certain risks such as wind or hurricane. The most widely accepted deductible we see customer’s carry today is 1% of the dwelling limit. This means that if your home is insured for $300,000 then your deductible would be $3,000.

In many areas, insurance companies treat wind/hail/hurricane coverage separately from the rest of the policy. In some very high-risk areas this coverage may be excluded completely. However, in most cases coverage is provided with an increased deductible requirement.

These terms refer to the standardized coverage forms that are the basis of most standard homeowners’ insurance policies across all states. It is important to know which type of policy you have because there can be significant coverage differences. The basic and broad form policies have a specific list of perils that are covered such as fire, lightning, wind, theft, etc. This is referred to as a “named perils” policy. However, a special form policy is referred to as an “all perils” policy. Instead of using a list of specific perils that are covered, all losses are considered covered unless they are specifically excluded in the contract. This provides broader coverage than the “named perils” forms and should be preferred if price is similar or even slightly higher.

More and more, insurance companies are restricting coverage for roofs due to increasing costs. Roof coverage is provided one of three ways: Actual Cash Value (ACV), Replacement Cost, or a Replacement Cost Schedule. ACV provides the narrowest coverage because the adjuster will depreciate the amount paid based on the age of the roof, existing damage and other factors. Replacement Cost is the preferred option because the insurance company is responsible for the full cost to replace the roof regardless of age or condition. A Replacement Cost Schedule pays for a percentage of the replacement cost based on the roof’s age.

Water damage is not always included in basic policies. Additionally, there are different types of water damage such as: sudden and accidental discharge of water or steam, backup of sewers and drains, overflow of sump pumps, slow seepage and leakage or foundation water damage. Most basic policies only provide coverage for sudden and accidental discharge (pipe burst). The other water damage coverages can be added for extra premium. If you do not see them listed separately on your declarations page, they are likely not covered in your policy. It is very important that you speak with your licensed QuoteSavant expert about what specific water damage coverages are included in your policy and what your limits are.

In most cases foundation damage is not covered. Slow Earth movement is always excluded. Earthquake coverage can be added either as an option or as a separate policy. Coverage to a foundation caused by water damage can be added on some policies for extra premium.

This provides coverage for bodily injury if an individual is injured on your property. The most common limit selected is $300,000. However, in most cases you can go up to $1 million. This is particularly important coverage to carry if you have a pool or trampoline, keep animals, have workers in your home on a regular basis or frequently entertain or have guests.

The insurance industry is very susceptible to inflation pressures. The cost of building materials, labor rates, transportation expenses and healthcare costs all contribute to the rising costs of homeowners’ insurance. Additionally, the increasing values of homes as well as the increasing frequency and severity of storms and catastrophic losses has hit the insurance marketplace hard in recent years. Shopping your insurance across multiple carriers using a licensed QuoteSavant expert can help make sure that you have a competitive rate and the right coverage options that you need.