Home Insurance

It’s important to have the proper homeowner’s insurance in place for your largest single investment – your home. Many people have homeowner’s insurance simply because they had to purchase it when they financed their home. But the coverage is so much more than just a mandatory purchase to fulfill the mortgage requirements.

Your homeowner’s coverage can help protect your house, of course – but did you know it also offers protection for your personal belongings, outbuildings like sheds, fences, landscaping, and even personal liability?

Understanding your insurance coverage is important so you can make the right choice in coverage. We’ll help you break down what homeowner’s coverage includes and how to purchase it.

Considering Your Home Insurance Needs

You’ll have to make some decisions when it comes time to purchase your homeowner’s insurance. Your coverage is designed to protect you, your family, and visitors to your home.

There are several factors to keep in mind when determining your level of coverage:

• Your home’s replacement value
• The replacement value of your personal items in the home
• Your home’s age
• The way your home was built
• Safety features and amenities of your home

Replacement Cost or Actual Cash Value

Consider also whether you need to have a policy with replacement cost, or a policy based on actual cash value. Replacement cost means the amount it would cost to replace your home and belongings with the same or similar home in today’s dollar cost. Actual cash value, on the other hand, factors depreciation into the reimbursement, which means you would not get the cost to replace your property in today’s dollars, rather the original cost less depreciation. Replacement cost basis is often more popular for homeowner’s policies.

What Does Homeowner’s Insurance Cover?

Your homeowner’s insurance policy covers many different things as part of the standard policy. There are conditions and exclusions with any insurance policy, so be sure to read your policy and ask your agent if you have any questions about your coverage.

1. Your home’s structure – Your home is a large investment and if it were damaged in a fire, storm, or other coverer peril your homeowner’s insurance would help you rebuild or fix the damages to the property.

5. Additional Living Expenses – If you can’t live in your home because of a covered peril, you can be eligible for Additional Living Expenses (ALE) payments to help with the extra costs of staying in a hotel and eating out.

Ask your agent for more specifics about what is covered under your homeowner’s policy.

Common Exclusions on Homeowner’s Policies

Homeowner’s policies cover many things, but there are a few common exclusions to be aware of so you can plan ahead if you need this coverage.

Flood – Flood policies are sold separately through private insurers such as www.californiafloodinsurance.com. Also providing coverage is the National Flood Insurance Program (NFIP). If you live in an area affected by flooding, you likely had or will have to purchase a flood policy in addition to your homeowner’s policy. If you do not have a flood policy, it may be a good question to ask your agent to determine if any flood maps show possible water level increases on or near your property. Please contact our sister company www.californiafloodinsurance.com for a fast quote on private flood insurance. You’ll be surprised how reasonable coverage can be!

How do I Learn More?

To learn more about home insurance, contact the experts at Jump Insurance. Our licensed experts will be happy to answer any questions you have.