Home Insurance
The Basic Components of a Homeowners Insurance Policy
Dwelling Protection – Coverage for the structure of your home. Most policies provide full replacement value coverage with an inflation extension built-in. Costs include the removal of debris if needed.
Contents Coverage – Your personal belongings fall under this category and it’s usually a percentage (75%) of the dwelling protection coverage. Most insurance companies carry limits on specific items, but you can add scheduled property endorsements.
Liability Protection – If you were to be sued or held liable for bodily injury on your property, this coverage would come into effect. Also can include incidents off-premise.
Additional Living Expense – The time may come when your home in non-livable due to a loss. This coverage would pay for additional costs incurred.
Additional Coverage Elements of a Home Insurance Policy
These endorsements can be added at an additional premium.
Home Day Care – Coverage for operation of a home day care.
Home Office – Coverage for business operations based from the home.
Flood Insurance – If your home is located in a flood zone, you’re required to purchase this coverage. It’s an option otherwise.
Earthquake Coverage – The coverage may be excluded for the standard home insurance policy, but can be purchased as an endorsement.
Typical Discounts of a Home Insurance Policy
Each company has it’s own discount coverage structure, here’s a few common discounts.
Home & Auto – It saves to combine your home and auto insurance, up to 20% on average. Actual discount does depend on company.
Burglar Alarm – If you have a standard monitored alarm system, most companies will offer a discount.
Claims Free – The longer you go without claims, the more you will save.
Longevity – After so many years with the same company, you can save with a loyalty discount.
Home & Umbrella – Have a general liability umbrella policy will give you a nice discount.