Homeowners Insurance FAQ
Q: What are some practical things I can do to lower the cost of my home insurance?
A: There are a number of things you can do to lower the cost of your homeowners insurance. The easiest thing to do is request a comprehensive review of your policy and your needs from R Hobbs Insurance Agency.
It’s not surprising to find quotes on homeowners insurance that vary by hundreds of dollars for the same home. When you shop, be careful to make sure each insurance company is offering similar coverage and your home is insured to its value.
Another way to lower the cost of your home insurance is to look for any discounts that you may qualify for. For example, many insurers will offer a discount when you place both your car and homeowners insurance with them. Other times, insurers offer discounts if there are deadbolt locks on all your exterior doors, or if your home has a security system. Be sure to ask us about any discounts that you may qualify for.
Another easy way to lower the cost of your homeowners insurance is to raise your deductible. Increasing your deductible from $500 to $1,000 will lower your premium, sometimes by as much as five or ten percent.
Q: What does a basic homeowners insurance policy cover in Illinois and Wisconsin?
A: The typical homeowners policy has two main sections: Section I covers the property of the insured and Section II provides personal liability coverage for the insured. Almost anyone who owns or leases property has a need for this type of insurance. Usually, homeowners insurance is required by the lender to obtain a mortgage.
Q: What is the difference between "actual cash value" and "replacement cost"?
A: Covered losses under a homeowners policy can be paid on either an actual cash value basis or on a replacement cost basis. When "actual cash value" is used, the policy owner is entitled to the depreciated value of the damaged property. Under the "replacement cost" coverage, the policy owner is reimbursed on an amount necessary to replace the article with one of similar type and quality at current prices.
Q: What factors should I consider when purchasing homeowners insurance?
A: There are a number of factors you should consider when purchasing any product or service, and insurance is no different.
Below is a checklist of things you should consider when you purchase homeowners insurance:
Determine the amount and type of insurance you will need. The coverage limit of your house should equal 100% of its replacement cost. If your policy limit is less than 80% of the replacement cost of your home, any payment from your insurance company will be less than the full cost to replace your home — you’ll have to pay the rest out of your own pocket. Also, decide if the personal property and personal liability limits are adequate for your needs.
Decide which, if any, additional endorsements you want to add to your policy. For example, do you want the personal property replacement cost endorsement, a water back up endorsement or a jewelry endorsement?
Once you have decided on the coverage you want on your homeowners insurance policy, please consult us at R Hobbs Insurance Agency, we will be able to help you determine if there are any gaps in coverage that you might not have been aware of, explain the details of the policy’s exclusions and limitations, as well as recommend an insurance company that will live up to your expectations.
Q: Where and when is my personal property covered?
A: Personal property (except property that is specifically excluded) is covered anywhere in the world. For example, suppose that while traveling, you purchase a dresser and you want to ship it home. Your homeowners policy would provide coverage for the “named perils” while the dresser is in transit — even though the dresser has never been in your home before.
Contact us!
Illinois and Wisconsin residents, at R Hobbs Insurance Agency, we offer several different types of insurance, business, home, condo, renters, boat, motorcycle, wedding, boat owners, landlord, etc. in order to help you protect all of your assets. Give us a call at (847) 680-0888 or email us at chris@rhobbsinsurance.com, we'd be happy to review your current coverage and answer any questions you may have.
Content Source: Safeco Insurance