Homeowners insurance

• Homeowners insurance policies generally cover destruction and damage to a residence's interior and exterior, the loss or theft of possessions, and personal liability for harm to others.

• Three basic levels of coverage exist: actual cash value, replacement cost, and extended replacement cost/value.

There are Eight Types of Policies:

• HO-1: The most limited policy type for single-family homes, HO-1s generally aren’t sold by insurance providers anymore.
• HO-2: A more common policy type for single-family homes and a slight upgrade from the HO-1.
• HO-3: The most common type of homeowners insurance policy for single-family homes, with broader coverage than the HO-2.
• HO-4: A policy type that is specifically for tenants and is referred to as renters insurance.

• HO-5: The most comprehensive form of homeowners insurance and the second most common policy type for single-family homes.
• HO-6: A type of coverage designed for condo owners.
• HO-7: The type of policy you get if you own a mobile or manufactured home.
• HO-8: A special type of homeowners insurance for older properties that cost more to rebuild than what they’re actually worth on the market.

 Actual cash value (ACV) covers the cost of the house plus the value of your belongings after deducting depreciation (i.e., how much the items are currently worth, not how much you paid for them). Some policies may contain a recoverable depreciation clause, which allows the owners to claim the value of the depreciation along with the ACV. 

 Replacement value policies cover the actual cash value of your home and possessions without the deduction for depreciation, so you would be able to repair or rebuild your home up to the original value. 

 The most comprehensive, this inflation-buffer policy pays for whatever it costs to repair or rebuild your home—even if it's more than your policy limit. Certain insurers offer an extended replacement, meaning it offers more coverage than you purchased, but there is a ceiling; typically, it is 20% to 25% higher than the limit. 

 Some advisors feel all homeowners should buy guaranteed replacement value policies because you don't need just enough insurance to cover the value of your home, you need enough insurance to rebuild your home.

Travel with peace of mind knowing you're covered  There are several natural disaster occurrences that are not covered by standard coverage. Standard homeowners insurance usually doesn't cover damage caused by floods. Earthquake damage is typically excluded from standard homeowners insurance policies. While some policies include limited coverage for sudden and accidental sinkhole damage, extensive or gradual sinkhole damage is often excluded as well. , medical emergencies, and lost baggage. Our policies offer worldwide coverage and 24/7 assistance.

 In general, rates are set based on the likelihood a homeowner will file a claim—the insurer's perceived "risk." To determine risk, home insurance companies give significant consideration to past home insurance claims submitted by the homeowner as well as claims related to that property and the homeowner’s credit. 

 Insuring a home that has had multiple claims in the past three to seven years, even if a previous owner filed the claim, can bump your home insurance premium into a higher pricing tier.  

 Neighborhood, crime rate, and building material availability will all play a part in determining rates, too. And, of course, coverage options such as deductibles or added riders for art, wine, jewelry, etc. 

 What else affects your rates? Generally speaking, almost anything that impacts potential risk may impact your rate. For instance, a home that is not well-maintained may increase the necessity for major damages. Another example is a home with a specific breed of dog that may be more susceptible to damage. 

• Have A Security System

Burglar Alarms can possibly save you up to 5% on your annual premium.

Installing a smoke alarm in your older home can save you 10% or more on your annual premium.

• Raise Your Deductible

The higher the deductible, the lower the annual premium.

• Multipolicy Discounts

Most Companies will give a discount of 10% or more, if you have a bundle including your home, auto, recreation and even health insurance.

• Plan For Renovations

If you plan to build additional or adjacent structures, consider the materials used. cement or steel-framed structures will cost less to insure.

• Pay Off Mortgage

Easier said than done, but the insurance company figures if you own the property, you will take better care of it.

 Homeowners insurance provides financial protection against damage to your home and belongings caused by covered events like fires, theft, and storms. It includes liability coverage for injuries or property damage to others. Policy types vary, each offering different levels of coverage. Having homeowners insurance helps safeguard your investment, cover unexpected expenses, and provide peace of mind in case of unforeseen incidents.