(From my insurance agency days)
We have assembled these Frequently Asked Questions for your convenience. If you have additional questions, please Contact Us .
Q: How much will my homeowner's policy cost?
Q: How can I reduce my homeowner's premium?
Q: Why is the insurance amount on my policy different from what I paid for the house?
Q: How is the insurance amount on my home determined?
Q: Do I need flood insurance?
Q: Do I need an umbrella policy?
Q: How much will my homeowner's policy cost?
A: The cost of homeowner's insurance varies according to many factors. As we prepare the quote for you, we will explain the different items that affect your ultimate cost. Generally the homeowner's premium is affected by location, coverage amounts, deductibles, and alarm discounts. Because we represent several homeowner's insurance companies, we will be able to provide a very reasonable estimate for you.
Q: How can I reduce my homeowner's premium?
A: There are three determinants of your homeowner premium that you can affect. Your cost will be higher if you have previously filed several claims. An honest accounting of your prior claims will allow us to provide the best possible quote. The deductible amount you select also has a strong effect on your premium. A moderate increase from $250 to $500 or from $500 to $1000 can save 5% to 10% of your premium. Installing an alarm system can qualify you for credits ranging from 2% to 30% of your premium. We can advise you of specific steps that will reduce your premium.
Q: Why is the insurance amount on my policy different from what I paid for the house?
A: The purchase price of your home was determined by several factors including location, special features, appeal of the neighborhood, school systems, commuting distance, size of your lot, and many other factors. The insurance amount on your home is based on how much it will cost the insurance company to rebuild your house if it is destroyed. These amounts can be very different. The market value of the home might be higher than the insurance amount if the home is in a very desirable location, if the community has many amenities, if it is within a close driving distance to a major city, if it has a large amount of land, or if it has a scenic view. The insurance amount could be higher than the market value if the home is older, has unique construction, or is in a congested or remote site.
Q: How is the insurance amount on my home determined?
A: Each insurance company uses different methods to determine the insurance amount or replacement cost of your home. Some use an estimating system based on the number of rooms in the home. Others use an estimating system based on the size of the home. The cost is then modified based on the location of the property. Some insurance companies will complete an inspection of the home to determine an exact replacement cost. This is common if you have a large home, an older home, or one with unique construction.
Q: Do I need flood insurance?
A: Flood insurance is required if your home is located in a flood plain. We can assist you in determining whether flood insurance will be required by your bank. We can also provide you with a flood insurance quote through the National Flood Insurance Program.
Q: Do I need an umbrella policy?
A: Today, more and more people are deciding to purchase an umbrella policy. We can advise you on your unique needs. What you should consider is how much you have at stake if you are sued. One amount to calculate is all of your current assets, plus all of your future earnings. This amount should be used as a starting point as you try to determine how much liability coverage you need.