Choosing the Right Homeowner's Insurance: Policies, Perils, and More!

Choosing the perfect homeowner's insurance policy can feel daunting, but fear not. I'm here to guide you through the process and highlight some crucial considerations.

1. Grasp Your Coverage

Standard policies generally offer four types of coverage:

• Dwelling: Protects the physical structure of your home.

• Personal property: Covers your belongings both inside and outside the home.

• Liability protection: Covers you against lawsuits for bodily injury or property damage.

• Additional living expenses (ALE): Covers living costs if your home is uninhabitable due to a covered loss.

2. Estimate Your Home's Value

Ensure you know the value of your home and the cost to rebuild it, as well as the worth of your personal possessions. This will inform your coverage needs. Replacement cost estimators are commonly used to establish this value.

3. Named Perils vs. Open Perils Policies

'Peril' refers to the specific risks or causes of loss covered by your policy. Named perils policies cover only the risks explicitly listed in the policy. Open perils policies, on the other hand, cover all risks except those specifically excluded.

4. Additional Coverage and Sub-Limits

Standard policies do not cover flood or earthquake damage. If you're in a risk-prone area, consider adding these coverages. Also, note that some high-value items like jewelry might have coverage sub-limits. You might need additional coverage for such items.

5. Roof Schedules

Roof schedules can impact your claim payout. Some policies offer full replacement cost, while others may depreciate the value based on the roof’s age. Be sure to understand your policy's stance on this.

6. Compare and Choose

Get quotes from various insurance companies and consider their coverage, reputation, and stability. Remember, the cheapest isn't always the best.

7. Understand Deductibles and Premiums

A higher deductible means a lower premium, and vice versa. Choose a deductible you can comfortably afford in case of a claim.

8. Review Your Policy

Regularly review your policy, especially after major life events.

As your trusted independent insurance agent, I'm here to answer any questions you may have. Let's work together to ensure your home is protected just the way it deserves!

Wayne Lilly Insurance