For many of us, our homes are our most precious possession. It is where we relax, rejuvenate, and create memories with our family and friends. If you have a mortgage on your house, homeowners insurance is required but, even if your home is paid off, homeowners insurance is one of the very best investments you can make because it protects your home and your belongings against damage or loss caused by events such as storms, fire, and theft.
At Keller-Brown, we get a lot of questions from Pennsylvania and Maryland residents asking about homeowners insurance and what is covered if a claim is made.
Here are five of the top questions and answers:
Q: Are my clothes and electronics covered by my homeowners policy?
Keller-Brown: Your belongings, including clothes, electronics, furniture, sports equipment, and other personal belongings are covered if they are stolen or destroyed by an insured disaster. That is true even if the loss takes place away from home. For example, if you are on vacation and your camera is stolen from your hotel room, that loss may be covered. There are dollar limits to the coverage, so if you own a very expensive collectible or piece of jewelry or art, you will want to consider a personal property endorsement, also known as a "rider," to insure the item for its officially appraised value.
To confirm you have enough coverage on your personal items, it is a good idea to take a home inventory. You can do this by going to each room and making a list of all of your possessions. Take photos as well and keep receipts. Estimate how much every possession is worth. Have high-ticket items appraised. Add up the cost of all your items to determine the value of your home's contents. This article has more ideas on how to conduct a home inventory.
Q: Does the insurance company reduce the cost or value of my lost item?
Keller-Brown: How much you will be paid for a lost item depends on the type of coverage you choose. The two types of property insurance coverage are "replacement cost," which covers the cost of repairing or replacing the item at the same or equal value, and "actual cash value," which is defined as the depreciated value of the product today. So, if your stereo is 10 years old and you opted for replacement value, you would be paid enough money to buy an equivalent stereo at today's prices. If you chose actual cash value, you would be paid the market value of your 10-year-old stereo.
Q: Can I get a place to live if my house is so damaged it is not livable?
Keller-Brown: Your homeowners insurance policy may cover a portion of your living expenses if you are temporarily unable to live in your home due to an insured disaster. For example, you may be reimbursed for the expense of renting a hotel room as well as some meals if your home is unlivable during the repair or rebuild process.
Q: One of our trees was uprooted due to high winds. Is it covered by my homeowners policy?
Keller-Brown: Trees, plants, and shrubs are typically covered under a homeowners insurance policy if the damage was caused by an incident covered under your policy. Of course, those items are not covered if they are lost due to disease or neglect. And, coverage is often limited to the cost to remove the tree, and capped at around $500 - $1,000.
Q: Why is my homeowners policy going up?
Keller-Brown: The primary reasons homeowners insurance has gone up is insured property losses in the U.S. have increased drastically, as have construction and labor costs. You can find out more about that in this article.
Despite recent increases, homeowners insurance remains a great value because it not only protects your biggest investment, it protects your family, too. For example, the liability protection included in your homeowners policy protects you and your family members against lawsuits for bodily injury or property damage. It may even pay for damage caused by your pets. Liability coverage also includes the cost to defend you in court, and court awards up to the limits in your policy.
No-fault medical coverage is also part of your policy. So if a neighbor slips in your kitchen, they can submit medical bills directly to your company, and expenses up to your policy limits can be paid without a liability claim filed against you.
Call Us Today for the Best Coverage at a Competitive Rate
When you get a quote from Keller-Brown, you can rest assured that we do everything possible to find you the best coverage with the most competitive premium. Contact an insurance agent at Keller-Brown Insurance Services today to answer any questions about homeowner insurance or for a free review and insurance quote. As an independent insurance agency serving Pennsylvania and Maryland, we represent several top-rated insurance companies. We have the flexibility to find you the right coverage at competitive premiums for home, business, auto, and more.
