Homeowner’s Insurance Help

The homeowner’s insurance policy is personal insurance coverage for owner-occupied homes and second homes. The policy includes coverage on the building, contents, living expenses, and personal liability coverage.

Homeowner’s Insurance Advice –

Learn what perils (fire, lightning, windstorm etc.) your policy includes. Are there different perils for loss to your building compared to the coverage provided for your personal property?

Does the policy pay for the replacement of your home after a loss?

Is the limit of coverage adequate? One estimate holds that 35% of homes are underinsured. Could you rebuild your home for the amount of insurance you have?

Don’t rely on your home insurance to protect a home based business. Commercial liability is excluded by most homeowner policies. Coverage on business property (computers, file cabinets, reference books, office equipment) is limited as well.

Are your contents valued at replacement cost or depreciated value?

Consider large deductibles to control your premium – $5,000 or $10,000 may make sense.

Many insurers are reluctant to provide coverage for dog owners due to the concern of liability from dog bites.

Most policies exclude damage by flood and earthquake.

Most policies limit coverage for damage caused by mold and fungus.

Most policies limit coverage on jewelry, silver, guns and fine arts. Check with your insurance agent.

Does your policy include liability coverage for libel and slander?

If you travel overseas, check with your agent to determine coverage for property away from your home. Insurance on personal laptop computers may be limited.

Is your policy’s bodily injury and property damage liability coverage adequate? Consider an umbrella liability policy for additional limits of protection.

Most homeowner’s policies include personal liability for volunteer activities. However, the policy does not include coverage for events such as employment practices liability and mismanagement. Non-profit volunteers should check with the charity to see what coverage is purchased by the organization – director’s and officer’s coverage for example.

Alarm systems may qualify for policy premium credits.

Insurers may provide premium discounts for clients who buy auto and home coverage.

Some insurers provide credits on home insurance for nonsmokers.