FAQ's and Answers:
What does homeowners insurance cover?
Homeowners insurance provides protection for your home, personal property such as furniture, clothing, appliances as well as for personal liability. It protects you from a variety of events, including fire, lightning, burglary, vandalism, storms, explosions, and more.
What should I look
for in a homeowners insurance provider?
Make certain that the company insuring
your home is financially strong. Check for an A.M. Best rating of
"Excellent" or higher. A.M. Best ratings are generally available
in your local library. Be sure the company is easy to contact. Many
companies provide an around-the-clock service center that can be
called 365 days a year.
What's the right amount
of insurance for my home?
Your coverage should match the value of
your home. Homeowners insurance can not cover the land your home
is on, only the structure. That means that the insurance amount
could be less than the purchase price or loan amount.
What is "replacement"
coverage?
In general, replacement coverage means
that in the event of a loss, the insurance company will pay what
it costs to replace the property at today's prices. Different
insurers offer different levels of replacement coverage.
Does my homeowners
insurance cover my personal property?
Homeowners insurance will also cover
the property you own as well as the structure itself. Your
clothing, furniture, appliances, and other belongings will usually
be insured up to a maximum limit.
What about special
items such as jewelry, works of art, etc.?
A homeowners insurance policy will frequently
limit coverage on some special items jewelry, currency, works of
art, etc. Homeowners who need additional coverage on these items
can usually obtain it for an additional cost.
What about flood insurance?
If your property is officially designated
as being in a special flood hazard area, you must obtain flood insurance.
While the federal government provides most flood protection, you
are responsible for applying and obtaining this coverage.
It's important to know that flood insurance is not included in a
standard homeowners policy. Even if your home is not in a
special flood hazard area, you may wish to consider whether you
need flood insurance.
More than ever, quality homeowners insurance
is an absolute necessity. Without it, an accident or natural
disaster could mean financial ruin to you or your family.
Get a free quote today!
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