Homeowners Insurance

Homeowners insurance protects the biggest investment most people will ever make. Your typical homeowners policy covers the property, including the house, other buildings or structures on your property, as well as your personal belongings such as furniture, clothing, and appliances.  In the event of a claim, homeowners insurance also provides for additional living expenses. In addition, your homeowners insurance provides for personal liability coverage. One thing that homeowners insurance does not cover is flooding, which requires a separate policy.

Special additions you can add to your homeowners coverage include:

• Home Replacement Guarantee
• Replacement Cost on Contents
• Earthquake

Understanding the difference between “actual cash value” vs. “replacement cost”

In your homeowners policy you can choose between actual cash value or replacement cost, which will affect your policy’s cost. When actual cash value is used in a policy, a policy owner is entitled to the depreciated value of the damaged property. When ‘replacement cost’ coverage is available in a policy, a policy owner is reimbursed an amount necessary to replace the article with one of similar type and quality at current prices.