Q. How much homeowners insurance do I need?

You need enough insurance to cover the following:

• Structure of your home – you’ll need enough to cover the cost of rebuilding your home at current construction costs.



• Your personal possessions - most policies provide coverage as a percentage of your total homeowners coverage. To make sure you have enough coverage, conduct a home inventory. Consider purchasing scheduled property coverage for valuables such as jewelry, antiques, art, musical instruments or collectibles.



• Cost of additional living expenses – covers living expenses if your home is damaged and you have to live elsewhere during repairs.



• Your liability to others - this covers you against lawsuits for bodily injury or property damage that you or family members cause to other people on the insured property. It also pays for damage caused by pets. And, it pays for both the cost of defending you in court and for damages a court rules you must pay.



• Business owners' policy - if you own your own business, consider purchasing a business owners' policy to provide additional protection.

Q. Are there different types of policies?

Yes. A person who owns his or her home would have a different policy from someone who rents. Policies also differ on the amount and types of insurance coverage provided.

The different types of homeowners policies are fairly standard throughout the country. However, individual states and companies may offer policies that are slightly different or go by other names such as “standard” or “deluxe.”

These options may be available:

• Actual cash value – pays to replace your home or possessions minus a deduction for depreciation.



• Replacement cost - pays the cost of rebuilding/repairing your home or replacing your possessions without a deduction for depreciation. This applies if you’ve adequately insured your home and possessions.



• Guaranteed or extended replacement cost – offers the highest level of protection because it pays whatever it costs to rebuild your home as it was before the fire or other disaster – even if it exceeds the policy limit.

Q. What types of disasters are covered?

Most policies cover:

• Fire or lightning
• Windstorm or hail
• Explosion
• Riot or civil commotion
• Damage caused by aircraft
• Damage caused by vehicles
• Smoke
• Vandalism or malicious mischief
• Theft
• Volcanic eruption

• Floods
• Earthquakes
• Maintenance damage
• Mudslide
• Landslide
• Sinkhole
• War
• Nuclear accident

Q. How do I take a home inventory and why is it important?

Could you easily remember all the possessions in your home if it were destroyed? If you take the time to document what you own, it can help you get your insurance claim settled faster, verify losses for your income tax return and help you purchase the correct amount of insurance.

It may sound like a lot of work – but it’s worth it. Start small – with one room at a time in your house.

Don't forget - Take pictures – or videotape – everything in the house, garage and outside. And be sure to store your inventory documentation in a safe place (safety deposit box, at a friend or relative’s house).

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Q. How can I save money on my coverage?

It’s important to make sure you get the right coverage. But there are ways to make the most of the dollars you spend on your homeowners insurance.

• Raise your deductible - raising your deductible could reduce your annual premium.



• Make your home more disaster-resistant - ask your agent what you can do to make your home more resistant to windstorms and other natural disasters. Updating your heating, plumbing and electrical systems to reduce the risk of fire and water damage may be important in older homes.



• Ask about discounts for home security devices - typically, discounts of at least 5 percent are available if smoke detectors, burglar alarms or dead-bolt locks are installed. Additional discounts may be available for sprinkler systems and high-end security systems.



• Discounts for multiple policies - many insurance companies offer discounts if you have both your auto and homeowners insurance with them.

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Q. How often should I review my policy?

Listed below are four events that should trigger a review of your policy:

When your policy comes up for renewal - review your policy to see if coverage changes need to be made, if new discounts are available or consider raising your deductible.

Major purchases or improvements to your home - if you’ve made any home improvements, purchased – or received – items of large value, you may need additional coverage.

You have made your home safer - by installing fire or burglar alarm systems, or by upgrading your heating, plumbing or electrical system. These may qualify you for a discount.

Major lifestyle changes - marriage, divorce or adult family members moving into your home can affect the belongings that need to be protected.

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Q. Is there additional insurance I should consider for my home?

Other coverages you may want to consider include:

Flood insurance - A flood loss is 30 times more likely to occur than a fire loss. Federal flood insurance is provided by many insurance companies to protect your home and its contents from damage caused by flooding.

Umbrella insurance - An umbrella policy provides additional coverage after you reach the limit on any underlying liability coverage in a homeowners, auto or other insurance policy. Please check the box for umbrella coverage when you submit your online quote request.