Homeowners Insurance

Because everyone’s needs are not the same, it is best to consult your agent to help assess your needs and find the insurance policy that is right for you.

What is Homeowners insurance?
Homeowners insurance provides financial protection against disasters. A standard policy insures the home itself and the things you keep in it.

Homeowners insurance is a package policy. This means that it covers both damage to your property and your liability or legal responsibility for any injuries and property damage you or members of your family cause to other people. This includes damage caused by household pets.

Damage caused by most disasters is covered but there are exceptions. The most significant are damage caused by floods, earthquakes and poor maintenance. You must buy two separate policies for flood and earthquake coverage. Maintenance-related problems are the homeowners’ responsibility.

Why do you need homeowners insurance?
It is really all about protecting yourself financially if something unexpected happens to your home or possessions. That’s important because chances are your home is likely one of your largest investments.

• If your home was destroyed by fire or damaged by a natural disaster, you’d need money to repair or replace it.
• If a guest in your home is injured, liability protection and medical coverage help pay expenses.
• If you are a victim of theft and vandalism, it can reimburse you for your loss or pay for repairs.
• If you are still paying for your home, your lender will require insurance.

It is important to know that homeowners insurance is meant to cover unexpected damage, not routine maintenance. Ask your agent to talk about what is covered and be sure to read your policy so you know exactly what’s included and what is not.

What does home insurance cover? 
As mentioned earlier, homeowners liability is just part of a comprehensive homeowners insurance plan. Other important areas of coverage include:

• Structure protection: Insures your house, garage and often detached buildings on the property. Often provides coverage in case of damage from fires, weather, theft or other hazards.

• Possessions insurance: Pays for damaged belongings. Protection might cover everything from food in the pantry to computer systems.

• Liability coverage:Additional expense protection: Do you need to move out temporarily after an accident? Let this coverage reimburse you for expenses such as dining or hotel bills.

Your homeowners insurance policy may not cover flood or earthquake damage. Talk with your insurance agent about these types of coverage.

Are all kinds of home insurance alike? 
Your home is unique, from its shape and size, to the materials used to build it. In addition, your possessions have wide-ranging values. Any loss is costly, so you’ll want to maximize your benefits.

• Ensure you have enough structure protection to rebuild the home. Keep in mind, the construction value differs from the cost to buy a new home.

• Ask your insurance agent to adjust your possessions coverage to match the full value of your belongings as closely as possible. That way, you’ll have fewer limitations when making a claim. Keep in mind, some policies will limit how much they pay per item.

• Your policy likely includes a deductible on damage. It’s a good idea to take as high a deductible as you can manage—this may lower your premium cost.

Homeowners coverage is critical to your overall financial well-being. Having a policy means you don’t have to pay for covered home damage in-full, out of pocket.

Things to consider and questions to ask your agent
Here are few things to discuss with your agent that will influence your decisions.

• How much will it cost to rebuild my house and replace my belongings if they are damaged or destroyed? (Ask your agent to talk you through your home’s features and the things you own so you can make an informed decision about coverage.)
• Does the insurance company have a good reputation for customer service? Is it known for paying claims fairly and promptly?
• What discounts are available? (Ask about multiple policy, security system and fire resistance discounts.)
• What’s the process for filing and settling a claim? (Ask who to call and what happens after you file a claim.)

If you have any questions about Merced home insurance feel free to contact us at (209) 723-2000.