Critical Considerations for Your Homeowners Policy
- A Guarantee for the Replacement for your home - whether a full Guarantee or an increased Dwelling limit capped at least 25% more than the limit on your policy.
- Increased Liability limits - a $100,000 limit is NOT enough, and $500,000 can often be had for around $5 per month.
- Replacement cost for your Personal Property (Contents) - Basic policies cover your clothing, furniture, electronics and appliances at their DEPRECIATED value, meaning you'll get a settlement for much less than it will actually take to replace these items.
- Water Back-up from a Sump, Sewer or Drain - Some companies limit what is covered by this common endorsement if the damage occurs in your basement.
- Earthquake Coverage - Even if you think it will never happen where you live, don't you deserve to know the cost? You should decide if this coverage is important or affordable, not your agent or the insurance company.
- HOMEOWNER'S POLICIES DO NOT PROVIDE COVERAGE FOR FLOODS. Period - No question about it. If you live in a defined flood zone, odds are that your mortgage company compelled you to buy a Flood policy. For the rest of us, you should know the cost. In low hazard areas, the cost for a flood policy can be as lttle as $20 per month. It's worth noting that about 1/3 of all flooding occurs in areas defined as "low hazard," according to FEMA and the National Flood Insurance Program (NFIP) statistics. Contact your agent to discuss the intricacies of flood insurance.