Written by Andy Gurczak

October 15, 2021

Homeowners Insurance: What to Know

What You Need to Know About Homeowners Insurance

Of course, homeowner’s insurance is not a luxury item in the United States. However, although the law does not require homeowner’s insurance, every mortgage company or bank offering mortgages does. Consequently, if you want to purchase a house, you need to have homeowner’s insurance.

Homeowners Insurance Policy

What does Homeowners Insurance Cover?

State agencies regulate insurance companies. However, there are no state requirements for specific types of coverage in a homeowner’s policy. Nevertheless, there are certain types of coverage that appear in standard homeowner’s insurance policies:

Your Home and Its Contents

Homeowner’s insurance provides dwelling coverage to the interior and exterior of your home. Furthermore, homeowner’s insurance also covers the contents of your home. Personal property, such as clothing, furniture, appliances and jewelry are all covered.
However, there are limits to how much the insurance company will pay for certain items. For example, the insurance policy may have limits regarding jewelry, artwork, antiques, etc. Consequently, if you have expensive jewelry, artwork, silverware, etc., you have coverage options to purchase additional insurance for those items.

Personal Liability Coverage

Your homeowner’s insurance covers losses relating to personal injury lawsuits.
For instance, someone could trip and fall on your sidewalk and sue you. In that event, your homeowner’s coverage kicks in. Therefore, your insurance company will hire a lawyer to defend you. In addition, the insurance company will pay any settlement or jury award (up to the policy limits).

Additional Living Expenses

The damage to your house could force you to leave while your house while it is being repaired or rebuilt. So your homeowner’s insurance will pay for hotels, restaurant meals, etc. However, these additional living expenses will have policy limits.

Homeowners Insurance Home

What Types of Homeowner’s Insurance Coverages Are Available?

Generally, there are three types of homeowner’s insurance coverage companies offer:

Actual Cash Value

Under this insurance, the company will pay you the current value of the damaged property. In other words, the company will pay the purchase price minus depreciation.

Replacement Cost

For this coverage, the insurance company pays the full price for like items to replace, repair or rebuild the damaged property.

Guaranteed or Extended Replacement Value

This property insurance coverage will pay for your house to be rebuilt, as it was, no matter the cost. Therefore, this coverage assumes it will cost more to completely rebuild the home as it existed before the covered event.

What Events are Not Covered by Homeowners Insurance?

There are some natural events that homeowner’s insurance does not cover. For instance, it does not cover flooding and earthquakes events. If you live in an area prone to flooding, you may have to purchase flood insurance.

How Should You Select a Homeowners Insurance Company?

First, use a local agent who works with several insurance carriers. For this reason, that agent can get quotes from different companies for you to compare. She will be available to answer insurance questions. She can get you homeowner’s insurance quotes from different home insurance companies.

You can also get a home insurance quote online.

Then go to your state’s Department of Insurance website. It will have information on ratings and the number of complaints the companies receive. Additionally, look up the companies’ retention rate. That is to say, the percentage of policyholders who renew their policies every year.

Go online and look for policyholder reviews. That can tell you how responsive they are to their policyholders. In addition, you can get information on how quickly (or not) they resolve claims of policyholders.

Homeowners Insurance Computer

How Do Homeowners Insurance Companies Set Their Rates?

There are several things carriers look at when setting rates for a particular homeowner.

First, the carrier will see how many prior property damage claims the homeowner has filed. Next, the carrier will even look at prior claims filed by previous residents of the property in question. For example, have there been multiple claims for roof damage because of high wind? Alternatively, was there more than one water damage claim filed for this property?

How Can You Lower Your Homeowners Insurance Rate?

There are several steps you can take to lower your rate.
First, bundle your policies. In other words, get a quote for a homeowner’s policy from your car insurance carrier. In fact, you may even get a discount.
 
Second, raise your deductible. By doing so, your rates will be lower. However, you will pay more out of your pocket if a covered event happens.
 
Furthermore, maintain your home and property. For example, install a burglar’s alarm. In addition, install smoke detectors. Small steps can help lower your rates and protect your home.

Homeowners Insurance Lower Premium

If You Have Questions About Your Homeowners Insurance, Call AllCity Adjusting

We are a family-owned claims company with five decades of combined adjusting experience. As a result, if there’s one thing we understand, it’s that you need 100% of your claim value.

Insurance companies undervalue your claim 8 out of 10 times. Moreover, they hire expensive adjusters to ensure they maintain a strong profit margin.

In addition, they have experienced actuaries that create insurance agency guidelines that help their team of agents to challenge your insurance claim’s validity. You have already gone through a tumultuous event. For this reason, get an agency that gets you more.

At AllCity Adjusting we work to ensure you get 100% of your claim value. Equally important, with over 50 years of combined adjusting experience, we know insurance companies and understand where they cut corners. Moreover, we help you build a larger claim, maximize your claim value, and get you back to normal fast. Don’t get fooled, get the company that gets you more.

Homeowners Insurance Call

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Best way to beat the insurance company is to hire AllCity Adjusting

At AllCity Adjusting we help residential and commercial clients alike get the claims support they need. Moreover, we have over 50 years of combined experience helping get our clients the max settlement time and time again. If your claim has been low balled or denied entirely we can help increase your maximum settlement. Call us today for a FREE consultation. Experience the AllCity difference.

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Salvageable v. Non-Salvageable Property After a Fire

Salvageable v. Non-Salvageable Property After a Fire

If a fire has occurred at your home, your first concern, of course, is the safety of yourself and your family. However, depending on the extent of the fire damage, you will have to resolve the issue of salvageable v. non-salvageable property after a fire. Homeowners’ insurance protects your home itself (Dwelling Coverage) and its contents (Personal Property Coverage). High heat, smoke, and soot can cause extensive damage to your personal property, such as clothes, furniture, hardwood floors, and appliances. For instance, smoke damage causes fabrics, clothes, and soft goods to reek of the smell of smoke. Additionally, smoke and soot can discolor objects and reduce the life span of electronics and machinery. Consequently, you and your insurance company will have to determine which personal property is salvageable v. non-salvageable property after a fire.

Actual Cash Value v. Replacement Cost Value

Actual Cash Value v. Replacement Cost Value

Many homeowners never read their homeowners’ insurance policy. Then a covered loss, like a fire or hurricane, causes extensive damage to the home and contents. Of course, the homeowner files a claim with her insurance company. Eventually, the homeowner gets a claim settlement offer from the home insurance company. However, only then does the homeowner learn the difference between actual cash value v. replacement cost value coverage.

What is an Appraisal Clause in an Insurance Policy?

What is an Appraisal Clause in an Insurance Policy?

Water damage insurance claims are some of the most frequent home insurance claims that homeowners file. However, homeowner insurance does not cover all types of damages caused by water. Therefore, handling water damage insurance claims requires the homeowner to be careful and diligent before and during the claims process.

Homeowners’ Property Damage Claim-Do You Need an Attorney?

Homeowners’ Property Damage Claim-Do You Need an Attorney?

Unfortunately, a terrible storm moved through your area. It left fallen trees and damaged homes in its wake. Your house was one of them. You have never filed a claim with your homeowners’ insurance company. But you now have a homeowners’ property damage claim-do you need an attorney?

How to Negotiate a Fire Damage Insurance Claim

How to Negotiate a Fire Damage Insurance Claim

One of the most traumatic events experienced by homeowners is a fire in their homes. Certainly, the potential for serious injury can be significant. However, the relief that no one was harmed soon fades away as the reality of the property damage sinks in. Now, one key question for the homeowner will be how to negotiate a fire damage insurance claim settlement.

Insurance Claims for Poorly Installed Stucco

Insurance Claims for Poorly Installed Stucco

Stucco is a popular siding used on new developments, homes, and businesses since the early 1900s. Manufacturers make it of cement, limestone, and silica. In fact, it has become very popular in the last 20 years. However, when not installed properly, it can lead to several problems. Therefore, some homeowners will have to file insurance claims for poorly installed stucco.

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