What is home insurance?
Homeowners insurance covers damage to your home, property, personal belongings, and other assets in your home. Your homeowners insurance policy may also cover living expenses above your normal cost of living if a covered loss forces you to stay elsewhere while your home is being repaired or rebuilt. It may also provide coverage for accidents or injuries that occur in your home or on your property. A homeowners policy covers injuries you may unintentionally cause to others away from your property for which you may be liable.
Eligibility
You are eligible even if you fall into any of these categories:
- Own pets such as a Pitbulls, Husky, German Shepherd etc
- Light Farm activities conducted within your property
- Vacant Homes
- Properties with roofs that need repairs or replacement
- Pools that are empty, un fenced, and/or have slides or trampolines
- Trampolines with or without a net
Whether you own the property you live in, lease it, use the property as a vacation or secondary home, etc need light or few repairs we have a policy for you. Some companies may decline coverage for properties that need repairs - not AALL! We insure properties regardless of the condition.
We work with multiple carriers to ensure we find the best fit, coverage and price.
We'll build the right policy for YOU!
Perils - Understanding What Losses Are Covered
Perils can range from weather events to other events like theft or vandalism. Exactly which perils your homeowners insurance policy will cover may vary by home insurance policy type.
Here are a few examples of common perils:
- Fire or lightning: Includes damage caused by lightning or an event caused by a lightning strike, such as a fire.
- Weight of ice, snow, and sleet: Refers to snow accumulation or an ice dam that causes damage to your home, such as a roof leak. Windstorm & hail: Includes damage caused by a wind or hailstorm.
- Windstorm & hail: Includes damage caused by a wind or hailstorm.
- Theft & vandalism: Refers to stolen belongings and willful damage to your property.
- Accidental water/steam overflow or discharge: Refers to water damage from a sudden break or blockage in your plumbing or HVAC system.
- Falling objects: Includes damage from a tree that falls on your house.
- Power surges: Refers to sudden and accidental damage from an artificially generated electrical current or power surge.
How Is Dwelling Coverage Calculated?
Dwelling coverage — or Coverage A — is the part of your homeowners insurance policy that protects the physical structure of your home from covered hazards like burning to the ground, or being crushed by a fallen tree. It'll pay to rebuild your home, making it one of the most important and expensive parts of your policy. How much dwelling coverage you need depends on the replacement cost of your home.
What are the factors that affect homeowners insurance premiums?
There is different information that is gathered about your home and also from you to determine your insurance rates. The biggest factors are the following:
Location
There are several things that are considered such as the distance from the property to the nearest fire station, whether there are any increased catastrophe exposure such as brush fires, flood, tornadoes etc. As well as additional exposures related to crime and increased risks.
Age & Type of Home
Construction materials and other home features such as flooring, custom cabinetry and finishes can increase the cost of your homeowners insurance. Typically the newer the home, better rates are available due to the decreased hazard of existing damage, wear and tear amongst other factors. The construction material that your home is built out of also plays a huge part. For example, concrete block homes may cost less to insure than wood frame houses as the chances of damage or total loss due to wind and fire are reduced.
Roof Age & Construction
Your roof type, construction, and shape can also be impactful when it comes to the cost of your homeowners insurance. If your roof material is asphalt shingles, which are less flammable, you may have a lower home insurance cost than if you had a cedar or wood-shakes roof.
Gable roofs are more common and typically the more affordable roof type to install, but they are more likely to sustain wind damage than hip roofs. Hip roofs (characterized by all sides sloping downward) often cost more to install but are more resistant to wind and may help lower your homeowners insurance cost.
Claims
Homeowners insurance companies look at claims you previously have filed. If you had multiple losses, you'd likely pay a higher rate as you're more likely to incur another claim.
Your homeowners insurance cost can also depend on the homeowners insurance coverages and homeowners insurance deductibles you select. You may be able to increase your coverage by thousands and your insurance rate might only be minimally impacted.
Home Insurance vs Home Warranty
The biggest misconception is that Home Insurance includes coverage for wear and tear such as A/C failure or breakdown which is common around the Valley during the summer months. However, this is untrue.
There are major differences between Home Insurance and Home Warranties. It is important to know the differences so you’re better prepared in the event of a loss and to determine if you need to purchase additional coverage.
Homeowners Insurance
- Covers your home's structure and anything permanently attached to your house.
- Covers structures that aren't permanently attached to your home such as a shed, fencing etc.
- Pays to repair or replace your belongings
- Pays for injuries or damages you or your family members cause to others
- Mandatory by your mortgage company during the life of your mortgage as you pay off your home.
Home Warranty
- Covers major appliances and systems like ovens, boilers, and septic systems
- Helps pay for repairs or replacements when covered systems fail due to age and normal wear and tear.
- Not required to have by your mortgage company, it is made optional to you.
Do I need both a home warranty and home insurance?
Although most lenders require you to carry homeowners insurance during the period of your mortgage as you pay off your home, home warranties are not required. It's important to understand how each one of these coverages compliments each other and how having both may help cover any gaps.
You may want to consider a home warranty if you own an older home that has older appliances which increase the likelihood of wear and tear and/or mechanical failure. Having such a warranty in place will help pay or repair these systems which are typically excluded from homeowners insurance when the damage or loss arises from wear and tear. Typically there is a small deductible to file a claim, which is considered an out of pocket upfront expense, however you won't have to worry about purchasing a new appliance such as a fridge for the full price.
FAQs About Homeowners Insurance
I have a mortgage, how is my homeowner's insurance paid?
Typically the cost for Homeowners Insurance is included in your mortgage payment if you have an escrow account. When you make a payment towards your mortgage, a portion of that is set aside and placed into your escrow account. Your escrow holds funds not only for your homeowner's insurance but also for property taxes. Policies are paid in full when due for a year by your mortgagee.
I paid my home off, am I still required to carry insurance?
Once your home loan has been paid off you are no longer required to carry homeowners insurance. However, you don't want to leave your home unprotected against damage or losses arising from weather related events such as wind or fire. Repairs can be costly if they are 100% out of pocket ,not to mention the additional coverages you'd also be missing out on such as coverage to your personal property, loss of use etc to name a few. You can work with your agent to find a policy that not only includes the proper coverage but also fits your budget and flexible payment plans.
Did you know?
Here are a few policy exclusions not covered by homeowners insurance:
- Flooding
- Earthquakes, landslides, and mudslides
- Termites, rats, bed bugs, and other infestations
- Mold
- Water backup from your sewer or sump pump
- Service lines
- Sinkholes
- Regular wear and tear
- Maintenance issues
- Intentional damage caused by a member of your home
- Homes vacant longer than 30 to 60 days
Talk to your agent about these exclusions and supplemental coverage offerings to account for these known policy exclusions.
