My Mom’s Guide to Homeowners Coverage
Mom, this is for you. Your homeowners Coverage broken down.
Insurance isn’t fun so why would you commit it to memory? I don’t expect you to know the ins-and-out of your policy. There’s peace of mind knowing we’re insured and don’t have to think about it. So,here are some generalizations about home insurance that you can refer to anytime you feel like it… or just call me.
Coverage for Your Home
Let’s say your Lakewood home costs $400,000 to rebuild. So, you purchase a policy with $400,000 in coverage that can repair or replace it to the same size and quality before damage. You have 400k to rebuild it if it’s destroyed by fire.
Coverage for Structures Not Attached to Your House
Your shed, detached garage and even your fence has value. To determine that value we generally start with a percentage of your home’s value, say 10% but it could be higher. You have 10% (40k) to replace the fence in the fire example above.
Coverage for Your Stuff
Determining the value of your stuff isn’t easy; a good starting point may be half the value of your home coverage, say 50%. You have 50% of your homeowners coverage to replace the stuff destroyed in the fire. There may be some limits on collectibles and difference between Actual Cash Value and Replacement Cost you have to consider.
Coverage to Help Pay for a Place to Live
You’re my Mom; you’re staying with me. However, if we get on your nerves you have this coverage to help cover costs to live somewhere. Such as renting a place while your home is being rebuilt. Usually a percentage of the home coverage. If it’s a rental property, it can help cover loss of rents.
Coverage for Personal Liability
This is a “because you never know” coverage in my opinion. It helps cover costs if someone sues you for damages because of bodily injury or property damage. Homeowners have been sued for slip and falls, food poisoning and more.
Medical Expenses for Others
Within your homeowners coverage is a small amount of medical expenses coverage for someone who is accidentally injured on your property, usually someone who has permission to be there.
A Bunch of Other Stuff
Your home is very different from mine and so are your needs. That’s why most insurance companies have coverages that can be added on or adjusted. Sometimes they’re part of a package at no additional charge but sometimes we pay extra for them or for higher limits.
Moreover, your needs are different from others therefore your peace of mind comes in the form of certain coverages tailored for you, like Personal Injury Protection for your auto insurance. You’ve told me what gives you peace of mind is knowing that there’s coverage for your grand-kids and others while riding as passengers in your car.
Homeowners Coverage Policy Check
Keep in mind, these are examples and may not apply to you. Your policy is always the best guide to refer to as what you just read are generalizations that do not emphasize details like deductibles, requirements and limitations.
And that’s that. Mom, I thank you for being our number one fan, supporter and of course our very first client. There will be a test on Tuesday.
Haymaker Insurance is a family owned and operated independent agency. We’re in Federal Way, WA and serve the great people of Washington State. If you our in the market for a home insurance quote or need help from an insurance agent please contact us at 253-220-5430 or email Tim at firstname.lastname@example.org.
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