What does home insurance cover, and what are the key things I should think about when buying a policy?

Answer 1

Every homeowner has a "deductible" (out-of-pocket expense) whether they buy insurance or not.  If you do not have homeowners insurance your "deductible" can be considered to be the entire amount it will cost to clear the debris and rebuild your home after it is damaged or destroyed plus replace all the items inside that were also damaged or destroyed.

A properly insured home is covered for the full reconstruction cost of their home for any peril (earth movement and flood are covered separately under state and federal policies respectively).  This should be reviewed annually to ensure proper coverages.  A good policy will include the coverages with the same protections for separate structures, personal property and loss of use (which pays additional living expenses while your home is being rebuilt or repaired).  Great policies will offer you Extended Replacement coverage to protect you in the event that construction costs rise quickly such as after a major catastrophe that destroys many homes at the same time.  Remember that in the end what ever your policy does not cover comes out of your pocket.

It is highly recommended to have enough Personal Liability coverage on your homeowners policy to protect you from any law suit stemming from damages you might cause to other people such as in an accident. You can also get Building Code coverage that will pay additionally to cover the costs incurred in order to meet building code changes (this is particularly important for older homes).  Guest Medical coverage pays limited medical expenses for guests without proof of liability.  Identity Fraud protection is also available on some policies.

Homeowners policies typically have limits on high value items like jewelry, collectibles, fire arms and computers unless you purchase additional coverage.  Be sure to know the values of these types of items and tell your agent if you need more coverage than is offered in the primary policy.

Answer 2

There are many things to ask when looking for Home Insurance. Not all carriers cover the same thing. depending on the type of home. A captive agent can only sell insurance with 1 carrier as a independant agent can compare with many companies.

 

1st thing you need to make sure you home is insured for the value of your home that does not include the land. Many of times I have seen homes over insured. But in the same breath you do not want to under insure it  and in the event of a loss not get what you need to replace or repair your home.

 

Also check to see what it covers like water and sewer back up coverage. Do you have valuables then they should be sheduled so you get them covered correctly.

 

My agency is available 24/7 Feel free to call and I will gladly help you understand your insurance question

Best Rates Insurance Inc 406-257-5060

Answer 3

Well there are different home policies available. The most popular one is the HO3,  where this policy covers owner occupied homes and will cover almost all of your property and liability claims with a few exclusions, such as earthquake, sinkholes. With all the home policies there are riders where you can add coverages and buy back some coverages that are not part of the policy. Even if you do not own a home and you are a renter, you should purchase a HO4 (tenant policy). This gives you basically same coverage as a HO3 but as a renter.

One of the main things to be looking for is the deductible.It is very important if you own property on the coastline. A lot of companies now have a separate deductible for wind storm or hurricane. It can be as high as 5% of the insured amount. If you are insured for $400,000, your deducible would be $20,000. It is important to be working with a broker you can trust is working for you. A cheaper price is not the main thing to look at, another company may have a few extra perks in their policy and be $20 more per year, you want your broker making the best choice or at least giving you the option. I have been helping my clients with their insurance purchases for 30 years. I believe all your insurance companies are basically the same, there is not to much difference in customer service, claims service or underwriters. It is important to have a broker who will go to bat for you if the case arises. That in itself is worth gold!