Having a homeowners insurance policy written to cover the most significant investment you have to protect your financial interest is essential. If your home is damaged or destroyed as a result of a fire, hurricane, tornado, or theft or other covered peril; your insurance company will indemnify for the repairs or replacements.
Insurance policy coverages vary between insurers. It is vital to know what coverages are included in your policy. You can’t get additional coverage after a loss, so ensure that you have the proper coverage that you need.
There are various types of homeowners insurance policies which coincide with the type of structure and how it is occupied. Coverages may vary depending on the type of policy.
Owner-Occupied: A owner-occupied homeowners insurance policy will typically cover the dwelling and any attached structures from perils shown in the policy. There is optional coverage available to protect detached structures such as a detached garage, tool shed, fencing or a pergola. Be sure to select the proper limit of coverage to replace these structures or to exclude that coverage if no such structures exist.
The homeowners policy includes coverage for additional living expenses. This is often a flexible coverage limit and should be tailored to meet your specific situation. Additional living expenses are incurred and paid for as the result of a loss due to a covered peril. When estimating the proper limit of coverage, you must consider your needs. If this is a primary home, you have a greater need for coverage than if this is for a secondary or vacation home. If you have friends or family that can assist you in the area, this coverage is less important. Be sure to consider the prospect of being out of your home on a long term basis, it does happen.
Coverage for damage from flooding often requires a separate insurance policy. If you are unable to find a company to write you a flood insurance policy, The Gordon Agency can assist.
It is important for you to know how your losses will be settled in the event your property is damaged, stolen, or destroyed. A replacement contract will cover the cost of items stolen or damaged at today’s prices and will not deduct for depreciation. A replacement cost policy offers more protection.
An actual cash value policy covers items for the value they are at the time they were damaged or stolen. Depreciation is deducted from their current value.
Typically, insurers require a visual inspection of the home and property to verify there are no potential hazards before writing a policy and assists the insurer in avoiding risks.
4-Point Inspection – An inspection of the roof, plumbing, electrical wires and heating and air.
Specialized Inspection – An insurer may request an inspection of a specific area.
Wind Mitigation Inspection – A wind mitigation inspection allows inspectors to determine which wind mitigation credits the homeowner is entitled to receive. The homeowner pays for this inspection. However, if the insurer elects to re-inspect the property, they are responsible for covering the cost.