June 26, 2022

Home FAQ's

Q: What is homeowners insurance?
A: Homeowners insurance is a form of personal lines insurance. The typical homeowners policy has two main sections:
  • Section I - covers the dwelling structure and contents.
  • Section  II - provides personal liability coverage to the insured.

Q: What do I need to know when purchasing homeowners insurance?
  • Determine the replacement cost of the structure by completion of a replacement cost estimate, which calculates the amount needed to rebuild the structure to like kind and quality in the event of a total loss.
  • Determine the amount of personal property coverage needed.
  • Determine the amount of personal liability coverage needed.  One way to do this is by calculating what your total assets are worth, and select an amount to protect those assets in the event of a lawsuit.
  • Select any additional endorsements you want to add to your policy.  Examples are: extended replacement cost coverage on the dwelling limit; replacement cost on contents; add personal injury to the liability coverage.
  • If coverage is needed on special items such as jewelry, collectibles, silverware, coins, etc., these items should be insured separately, as most home insurance policies offer limited coverages to these types of property.

Q: What is "actual cash value"?
A: When "actual cash value" is used in a policy, a policy owner is entitled to the depreciated value of the damaged property.

Q: What is replacement cost"?
A: When "replacement cost" coverage is used in a policy, a policy owner is reimbursed an amount necessary to replace the article with one of similar type and quality at current prices.

Q: Where and when is my personal property covered?
A: Coverage C of a homeowners policy provides named perils coverage. This applies to all your personal property (except property that is specifically excluded).

Q: Should I purchase earthquake coverage?
A: Direct damages due to earthquakes are not covered under the standard homeowners insurance policy. If you live in an area that is prone to earthquakes, you may want to consider adding an earthquake endorsement to your homeowners insurance policy. This endorsement will cover damages due to earthquakes, landslides, volcanic eruptions and other earth movements.

Q: Should I purchase flood coverage?
A: If your property lies in a flood plain as determined by US Government Flood Maps. Ask your independent agent about a flood quote.