homeowners Insurance Recommendations
- Review the amount of fire insurance coverage that you carry on your home. The amount of coverage you carry, (The Replacement Cost), should reflect the total cost to rebuild your home at today’s labor and materials costs. It should not be based upon the Market Value, Mortgage Value, or Assessed Value. Since building costs have increased dramatically over the past 10 years, now is a good time to update your coverage. (We can help you establish this limit).
- A Personal Property Replacement Cost rider is recommended on all homeowners policies. With this type of rider, the insurance company will pay a personal property claim based upon today’s replacement cost of an item instead of on a “depreciated” basis.
- All homeowner policies provide very limited coverage for certain types of property such as jewelry, silverware, furs, antiques, fine arts, guns, collectibles, etc… A special rider is available to provide coverage for these items. Recent appraisals are required in order to obtain coverage and to establish proper valuation. Appraisals should be updated every few years. Coverage for money, securities, trees, shrubs, and landscaping is also very limited.
- The standard homeowners policy “does not” provide coverage for the perils of Flood or Earthquake. Flood coverage is available from the National Flood Plan and Earthquake coverage is available as an endorsement to the homeowners policy. Damage caused by Flooding, Water Seepage, and Surface Waters has been a major problem across the country. If your home is susceptible to flooding, we strongly urge you to consider purchasing Flood Insurance.
A 30-Day waiting period applies.
- Coverage for Fungi, Mold, or Mildew is also very limited and restrictive under a standard homeowners policy. Most policies include basic limits of $10,000 for property and $50,000 for liability. We recommend that you consider raising these limits to higher amounts.
- The standard homeowners policy “does not” provide coverage for the additional costs required to comply with the enforcement of building codes or ordinances affecting the construction, demolition or repair of a home damaged by fire. Ordinance and Law coverage can be added by endorsement to a homeowners policy. This additional coverage is strongly recommended, especially for older homes.
- The standard homeowners policy has many other exclusions and limitations that you need to be aware of. It was not designed to cover everything that can happen and it was not designed to cover every type of property that you own. For example, no property or liability coverage is provided by the standard homeowners policy for the ownership or use of automobiles, recreational vehicles, aircraft, or watercraft (except small rowboats and canoes). Also, the homeowners policy was not designed to provide coverage for business activities, business property, rental properties, or secondary residences. Other types of policies are available for these exposures. If you operate a business from your home, a separate business policy should be obtained.
- Identity Theft coverage is a new option available on most homeowners policies. If you would like this coverage extension added to
your policy, please let us know.
- Personal Liability coverage is a very important coverage on your policy. We recommend that you carry at least $500,000 of Personal Liability Coverage and $5,000 of Premises Medical Payments coverage.
- A $2,000,000 Personal Umbrella/Excess Liability Policy is also strongly recommended. Higher limits are available and recommended.