If you are preparing to purchase homeowner insurance, congratulations! You are likely about to make one of the most important purchases in your life.
There are a number of reasons you will want to purchase the right Homeowner policy from a reputable company and a knowledgeable insurance professional. The top reason: your home is likely the largest asset you own and almost all your possessions are likely inside it. Failure to properly insure your home could ruin your family’s finances. Here are quick descriptions of six key areas of a Homeowner policy.
Coverage ‘A’, Dwelling Coverage
Dwelling Coverage is the only aspect of your Homeowner policy that concerns your mortgage company. Your insurance professional comes up with an accurate reconstruction cost of your home based on the unique attributes of your property. Steer clear of insurance companies who simply use your purchase price or your purchase price x 80% to determine the dwelling coverage. This can leave you underinsured, since the cost to rebuild a house and the price you pay for a house are rarely the same. Factors such as labor costs, material costs, land value, location and time of year can greatly change the price to reconstruct a home. Due to these fluctuations in reconstruction cost, Mike Schmisek Insurance Agency offers an additional 125% in coverage on top of your dwelling coverage at no extra charge.
Coverage ‘B’, Separate Structures
Separate Structures coverage is included in the price of a typical Homeowner policy. Limits of this coverage are generally 10% of your dwelling coverage. Separate structures include detached garages, sheds, fences, gazebos or dog houses. It may be necessary to increase your coverage ‘B’ beyond the limits included in your policy, so speak with your insurance professional to get the right amount of coverage ‘b’.
Coverage ‘C’, Contents
Contents coverage protects your belongings up to specified limits worldwide! Contents coverage limits vary by company, but all insurance companies limit certain items to lower limits. These items include; currency, securities, watercraft, trailers, jewelry, firearms, business property, imported rugs, trading cards and motor vehicle parts. It is important that you discuss in detail what type of items you have in your home with your insurance professional. Mike Schmisek Insurance Agency is still one of few to cover identity fraud up to $30,000 under your contents coverage.
Coverage ‘D’, Additional Living Expense or Loss of Use Coverage
Loss of Use pays additional living expenses incurred if you are unable to live in your home after a covered loss. This coverage could pay for a hotel, apartment, rental home, extra food expenses incurred, pet boarding or an added commute. Most insurance companies only pay loss of use for up to one year from the date of your loss. Mike Schmisek Insurance Agency pays loss of use until the reconstruction of your home is completed.
Coverage ‘E’, Comprehensive Personal Liability
Liability coverage can protect you in the event of a lawsuit when you are liable. Coverage limits can range from $100,000 – $1,000,0000. Liability coverage is inexpensive and can protect your assets as well as save you from a lifetime of garnished wages; the average comprehensive personal liability award in 2005 was $541,117!
Coverage ‘F’, Medical Coverage
Medical coverage is similar to liability coverage, although you do not have to be at-fault for this coverage to pay out! No deductible is associated with Medical Coverage. It does not impact your insurance rates if you make a claim.
You are about to make one of the largest purchases in your life. You owe it to yourself to spend 60 minutes speaking with a qualified insurance professional so you can help protect your financial future!