Traffic Talk EP. 1: The ABC’s of homeowners insurance

What you need to know about Homeowners insurance

Just like when you are learning a new language, you start with the ABC’s! So let’s starts with the ABC’s of homeowners insurance:

Coverage A- Dwelling

The dwelling portion of your insurance covers the physical structure of your home; The walls, floors, ceilings, etc. This coverage protects your home from the damage to the actual structure and anything that is permanently attached.

Coverage B- Other structures

It is common for homes to have other structures on the property that are not connected to the home, like fences, mailboxes, sheds, and detached garages

Coverage C- Personal Property

This coverage insurance all of your belongings. This is an essential coverage when the interior of the home sustains damage, like in a fire. Most policies only provide so much coverage for valuable items such as paintings, jewelry, guns, etc. It is in your best interest to review your policy to see if more coverage is needed to ensure you have the right amount of coverage.

Coverage D- Loss of use

This coverage is only used if your home is damaged to the extent that you can no longer reside in it. For example, if a pipe bursts and floods the home and it causes you to live in a hotel for a couple of months while the home is being repaired; The loss of use coverage will reimburse you for the expenses such as food, lodging, gas, etc.

Coverage E- Personal Liability

This coverage protects you from instances where you are liable for negligent actions

Coverage F- Medical Payments

Medical payments coverage on a homeowners insurance policy is similar to medical payments on an auto insurance policy. This coverage is to pay medical bills for those who get injured while on your property.

Now, let’s dive in a little more!

It’s 2020 and I know there are plenty of people out there who’s goal last year was to buy a home and you did just that! Congrats! Maybe you were rushed into buying homeowners insurance and you still aren’t really sure what you’re paying for. Perhaps you would like to switch companies and you want to be more educated when it comes to what you’re looking for. Well that is a great decision and we are here to help! It’s always important to know exactly what you’re paying for. 

So when you are looking to purchase home insurance you’re going to hear the word “dwelling” come up a lot in conversation. Just know that this just means your home as a whole. 

Dwelling cost is something important to know about- essentially it means figuring out the value of the replacement cost of your home to help pay for rebuilding  in the event of damage by a covered hazard. How do you estimate the replacement cost? Well it is roughly $125 multiplied by the square footage of your home. However this does vary significantly by state, city, the grade and upgrades of your home, such as; granite, counter tops, wood flooring, bath tubs, bathrooms, pool, fireplace, porch, etc. As well as the year your home was built in. 

It can also include your separate structures such as; a small barn, shed, mother in law quarters, etc. This coverage, as mentioned above is coverage B- Other structures

You’re also going to talk about personal property- which is all of your things however there are limits. 

For your jewelry/furs you could get from 1000 to 3000 in coverage depending on the insurance company. These items are covered by losses caused by the perils on your homeowners policy (fire, windstorm, theft, and vandalism).

However, you do have the option to purchase a floater policy. This may be the pricier route, as this covers expensive items that are typically over $5,000. Floaters cover losses of any type, including the ones your homeowners insurance policy won’t cover. For example, you could have an accidental loss- you drop your ring down the kitchen sink drain or leave an expensive jewelry piece in your room while you were on vacation and forgot to pack it. However, make sure your items have been professionally appraised before purchasing a floater policy. 

Loss of use- What is it?

Loss of use if a very important coverage that some people aren’t aware of. Let’s say in the unfortunate event that you were unable to live in your home temporarily due to a fire, flood, or any sort of covered incident your insurance will swoop in and help you. Well by help, what does that mean exactly? That means that your insurance company will help cover costs for your hotel, rental, or temporary apartment,  food expenses, etc. While your home is being rebuilt or repaired. Loss of use it typically already built in to your homeowners insurance policy, of course like everything else in this world there are limitations to how much your insurance provider will reimburse you for. Just because your home is being rebuilt doesn’t mean this is an opportunity to eat at the fanciest restaurants you wouldn’t usually eat at. 

Here are some things that are usually covered that help maintain your normal living standard:

• Pet boarding
• Laundry expenses 
• Parking expenses 
• Storage costs for household items
• Transportation fees
• Grocery or restaurant bills
• Moving costs
• Temporary residence 

Loss of use is a great part of your homeowners insurance that can provide you with some piece of mind when things don’t go as planned. 

Personal Liability Coverage- What and who does it cover?

When it comes to who it covers, usually anyone that is considered a family member and lives in the home is a covered party. Such as, spouse, in laws, children, parents, and even live in employees. 

Here are some common claims you can refer to:

• Dog Bites- This is an unfortunate one because it happens more often than it should and usually results in a lot of insurance claims throughout the year. 
• Slips and falls- (your elderly mother in law slips and falls down the stairs. That’s a hefty medical bill) 
• Neighborhood damage- (your son throws a baseball and it ends up going through the neighbors window)

Medical Liability Coverage-

Just like you want to make sure you are taking care of the people around you when they are in your car, you also want to take care of the people around you when they are in your home. Right? Well this is going to help with medical bills and medical coverages for if someone gets hurt on your property.

Optional coverages and endorsements-

• Earthquake
• Business from home
• Childcare
• High end collections- memorabilia, silverware, etc.

Give us a call at (909)757-1311 to help you figure out what’s best for you. We can guarantee we will make your insurance process easy peasy!