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All You Ever Wanted to Know About Insurance

Hunting for the Right Homeowners Insurance Policy

House-hunting is a challenge – but once you find the place that suits you just right, you’re not finished! You also have to obtain homeowners insurance that’s a perfect fit for your place – and your family. Here are a few things to keep in mind as you shop for a great policy.

  • Many factors figure into the cost of your homeowners policy. Your home’s age and location and whether or not you have a security system are important considerations. If you have a pool or a trampoline, you will want to be sure that the liability portion of your policy offers sufficient protection if a guest is injured while using them. Work with your insurance agent to ensure that you get the right coverage to protect your unique home.
  • It’s vital to understand exactly how your policy protects your property. For instance, your insurer will likely compensate you if your home is damaged due to fire, hurricane, lightning, or vandalism. But it is not likely to compensate you if your home is damaged due to flood or earthquake – you will need a flood or earthquake policy to protect you from those particular disasters. Most standard policies even cover the trees and plants on your property (if they are destroyed by covered peril)!
  • Your homeowners policy does cover the items inside your home – up to a point. For instance, if your furniture, appliances, clothing, or electronics are stolen or damaged due to a covered peril (such as vandalism), your insurer will compensate you for those losses. But if you have an expensive computer or audio system, a valuable art collection, or high-priced jewels, you may need to purchase additional coverage to protect those big-ticket items.  
  • You can choose which coverage is right for you: actual cash value, in which the policy will pay to replace your home or possessions less a deduction for depreciation; replacement cost, in which the policy will pay for the cost of rebuilding or repairing your home, or replacing your possessions, without a deduction for depreciation; or guaranteed/ extended replacement cost: a guaranteed replacement cost policy will pay whatever it costs to build or repair the home as it was before it was damaged, even if that cost exceeds the policy limit, and an extended replacement cost policy will pay a certain percentage over the policy limit to rebuild the home.

The most important point to remember is that you don’t need to feel overwhelmed by the insurance decision process! Work with your agent to assess the risks to which your home is exposed, your budget, and your comfort level with risk and price to choose the protection you need.

Beall Financial and Insurance Services has been working with property owners for more than 30 years to help them protect their most important assets: home, health, and business. If you have questions about insurance coverage for your home, family, or business, contact us.