Insuring Your Home – Replacement Cost vs. Market Value

Unfortunately, disaster can strike at any time. No one is immune to the threat of losing his or her home due to any number of possible hazards. But a recent survey found that most homeowners are seriously underinsured.  Marshall & Swift/Boekh, a leading insurance data services company, found  that 66 percent of homeowners had inadequate coverage by an average of 18 percent. That works out to $36,000 for a typical $200,000 home. While few people would willingly choose a policy with a $36,000 deductible, that is the net result of being underinsured by that much on what may well be their most valuable asset. Market Value vs. Replacement Cost The market value of what your home would sell for today 

Read more

What Renters Need To Know About Insurance

Since most homeowners are also mortgage holders, they are required to have home insurance. However, most renters are not required to purchase renter’s insurance according to the terms of a lease. They face many of the same risks as homeowners. Although renters do not have to pay for the actual structure that is rented, they are responsible for covering their personal belongings that they bring into the structure. Most renters do not purchase insurance because they feel that it is too expensive. Average policies range between $10 and $30 per month. In comparison with the cost of replacing expensive belongings, the monthly premium is a good deal. This is especially true since renters have no control over the actions of 

Read more

Insurance for a Swimming Pool

You’re having a new pool installed in your backyard, and you can’t wait to dive into a summer of swimming fun.  Of course, you may be so busy buying water wings, noodles and floats that you forgot to take care of one very important detail: your insurance. Now is the time to take a close look at your homeowner’s policy to see if you have sufficient coverage for your new pool. Your first step should be to give your insurance agent a call right away and let them know you have a new pool. If you neglect to inform them of this important fact, it could cause problems down the road if someone is injured in your pool. Your pool 

Read more

What Does Homeowners Insurance Cover?

Dan called and said the aluminum siding on his home is worn out and needs to be replaced. He asked if the siding would be paid for by his homeowners insurance. I informed him that worn out siding is not a covered loss which preceded his next question…what does homeowners insurance cover? Homeowners Insurance Homeowners insurance is designed to cover a “sudden and accidental loss”. Homeowners insurance provides a lot of coverage but it is not a maintenance policy and does not provide coverage for damage due to “wear and tear” or “old age”. Use homeowners insurance for the “Big Event”. If your house catches on fire or a pipe bursts inside your home causing significant water damage, homeowners insurance 

Read more

Hurricane Insurance – Are You Covered?

We’ve all seen the dramatic effect hurricanes can have – both the initial wind then rain and the floods that follow. Make sure your homeowners insurance provides the coverage you need before the storm hits. If you can’t live in your home, make sure your policy will pay additional living expenses. Review your policy for detailed coverage explanations. You should review your insurance policy once a year to make sure you have enough coverage to rebuild based on current construction costs. This value is not the same as market value or assessed value. We recommend you get a precise estimate and make sure you talk to your agent about your home’s unique features. Flood damage from hurricanes isn’t covered by 

Read more

3 Ways to Save on Homeowners Insurance

You can lower the monthly premium on your homeowners insurance in 3 ways. We’ll discuss those ways but first let’s discuss what homeowners insurance is designed to cover. Homeowners insurance is designed to cover a “sudden and accidental” loss. Homeowners insurance is not a maintenance policy and it will not cover damage due to wear and tear or old age. Homeowners insurance is the best value on the insurance market today. In most cases, for less than $100 per month, homeowners insurance will provide coverage to rebuild your entire house and replace all of your contents. Not to mention, homeowners insurance also provides liability coverage. Tip 1 – Raise Your Deductible The first way to save on homeowners insurance is 

Read more

Replacement Cost Insurance

Choosing replacement cost insurance on your home’s contents helps restore the comfort of your home in the event of a loss. It could be worth hundreds, even thousands of dollars to your family. Replacement Cost Insurance Most homeowners insurance policies cover your personal property for its actual cash value. You may prefer to cover your contents for the cost to replace them – new for old – by requesting replacement cost contents coverage. What is Actual Cash Value? Actual Cash Value is replacement cost less depreciation. The actual cash value of your household property is what the items are worth at the time of a loss. For example, a flat screen television usually lasts about 10 years. If you own 

Read more

Insuring a Home with a Pool or Trampoline

We are often asked, “If I have a swimming pool or trampoline in my back yard will homeowners insurance cover it?” Swimming pools Because of both the high rate of drowning and the severity of water-related injuries, insurance companies consider swimming pools one of their biggest liabilities. Consider the possibility of a neighborhood kid accidentally falling into your pool and sustaining an injury. You could be held liable for the high cost of their hospital bills, and if they choose to sue, you could also rack up considerable lawyer fees and other court expenses. Most standard homeowners insurance policies include a minimum liability coverage limit of $100,000 in order to help protect you financially in the event of such a 

Read more

Landlord Insurance

You might think of this policy as homeowners insurance for landlords. As with homeowners insurance, your policy will cover the structure itself, in the event that it is damaged by any number of causes, such as storms, fire or malicious acts. The policy will also typically provide liability protection to cover injuries to anyone on the premises in the event that these injuries are deemed to be your fault or the result of negligence on your part. A basic landlord insurance policy will typically include: Building insurance for damage to structures such as the rental home or apartment complex, as well as sheds, garages, fences, retaining walls and swimming pools. Building coverage also usually includes any gardening and maintenance tools 

Read more

Equipment Breakdown Coverage

You know that household appliances and equipment can stop working at any time. That’s why equipment breakdown coverage is a superior value, with a competitive price and great protection. What Is Equipment Breakdown Coverage? This unique coverage is a type of home warranty that extends to many of your essential home systems and personal property. It’s homeowners appliance insurance that provides protection in the event of an unexpected mechanical or electrical breakdown not caused by normal wear and tear or corrosion. Multiple Appliances, One Warranty Equipment breakdown coverage can be used to replace costly and confusing coverage provided by home warranties and big-box retailer extended warranties. It’s an alternative way to protect both your belongings and your budget. Energy Star® 

Read more