investment and it starts with a homeowners policy. Homeowners insurance provides financial protection against
disasters. A standard policy insures the home itself and personal items 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. A homeowner policy is not a maintenance policy rather a
disaster coverage policy. Remember general maintenance of your property will always falls on the homeowner.
Quick Facts
Most standard homeowners insurance policies will provide coverage for damage to your home (and many of the
items in your home) caused by:
- Hurricane
- Theft
- Fire and lightning
- Smoke
Homeowners insurance also provides coverage for liability claims, medical payments to third parties, and legal
costs if a lawsuit is brought against you. The most common amount of liability coverage included in a
homeowners policy is $100,000, but you may need much more, depending on your circumstances and or assets.
Most homeowners policies exclude damages caused by an act of war, nuclear accident, flood, earthquake, and
terrorism. The exclusions should be review by the policyholder and or agent selling the policy. You may be able
to purchase special policies or endorsements that will cover these events.
Most homeowners insurance policies limit coverage for certain high-priced or hard to replace items. Additional
endorsements or floaters will be necessary to protect items like engagement rings, watches, furs, antiques, and
other valuables. You'll need to have each item appraised. Ask any Envoy Insurance agent how to protect your
personal valuables.
Consider purchasing replacement cost coverage with your homeowners insurance. When it comes to valuing
property, insurers generally use one of two methods. The first, actual cash value, pays you an amount equal
to the replacement value of the property, minus depreciation for the years you owned the item. The second,
replacement cost, is more expensive, but it pays you the full value of the item today, so that you can replace
the old item with a new one.
To save money, consider choosing a higher deductible in both your hurricane coverage and all other perils
deductible. In the event of a loss you will be required to pay this amount out of your own pocket before your
homeowners insurance takes over. Other money saving items include the installation of a central monitored
alarm system, hurricane shutters, improvements on your roof, or get your auto insurance from the same
company. All these discounts will be reviewed with you when you purchase your insurance from Envoy
Insurance.
Please note that this description/explanation is intended only as a guideline.
