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What You Need to Know About Homeowners Insurance
Every home has different features just like every homeowners insurance
policy. When shopping for homeowners insurance, here are a few things to keep in
mind:
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Price should not be your deciding factor. It is important to make sure
that your home is insured for enough to be rebuilt. To figure out what your
house would cost to be rebuilt ask a local contractor or your insurance
agent for their professional opinion.
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Each policy comes with coverages that are specific for your needs. It is
important to understand your insurance policy and the coverage it provides.
Listed are the major coverages that every homeowner’s insurance policy
should contain.
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Building- The amount of insurance you would have to replace
the structure in the event of a loss
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Separate Structures- The amount of insurance you would have
to replace anything that is NOT attached to the house (tree, fence,
garage…)
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Personal Property: The amount of money you would have to
replace your personal belongings in the home or anywhere in the world
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Loss of Use: The amount of money you would have to live
somewhere else while your house is inhabitable. This coverage is for 12
months only and covers additional living expenses.
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Personal Liability: The amount of money you would have if you
are held responsible for the damage of someone else’s property or if you
are negligent and getting sued.
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Guest Medical: Money to use if a guest gets hurt on your
property
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Building Ordinance: When the law mandates upgrades after a
covered loss, this money is used. Without this money the upgrades
(single to double pane windows, wiring upgrades, etc.) are at your own
expense.
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Contents Replacement: All of your belongings, from your
carpet to your dishes, will be replaced at replacement cost. This means
we will not depreciate the value of your belongings.
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Extended Replacement: This coverage gives you 125% of the
dwelling amount to rebuild your house rather than the standard 100%.
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If you own a home but are renting it out you should have a landlord
policy on that property. This policy is very similar to a homeowner’s policy
but it also includes coverage for any loss of rents you might incur due to a
covered loss.
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Renters insurance is important if you are a tenant or if you have a
tenant living in your property. This insurance is designed to protect the
personal property of the tenant as well as anything they could be liable
for. If you are the landlord, encourage your tenants to have this coverage
so that you are protected if they are responsible for a loss on your
property.
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Your insurance agent and the company they represent will be crucial when
you have a question on your policy or a claim. Make sure you are using a
reputable company with an agent that is available when you need them.
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