We don’t take shortcuts on protecting your home. However, YOU shouldn’t have to be a licensed agent in order to understand what your policy covers! So…we created a cheat sheet for you. Make sure you’ve got this on YOUR home! Have questions? Give us a call at 757-452-4563! We’re happy to help 🙂

 

Homeowners Insurance 101

 Dwelling

Covers the house and attached structures for accidental direct physical loss except those losses excluded by the policy.  This includes built in or attached items such as built in appliances or wall-to-wall carpet.

 

Other Structures (Typically 10% of the Dwelling amount)

 Covers other buildings or structures on the property that are separated by clear space from the house.  Examples are a detached garage or a gazebo.  The covers for accidental direct physical loss to the structure except as excluded or limited by the policy.

 

Contents (Typically 55-70% of the Dwelling amount)

 Covers your personal property, such as furniture and clothing, and items that are not attached to or built into the home.  Covers these personal items for loss due to specific causes such as fire, smoke, wind, theft, and other causes as described in the policy.

 

Personal Liability (Typically between $100,000 – $500,000)

 Covers damage to others for which you are held liable except as limited or excluded by the policy.

 

Medical Payment to Others

 Pays for medical or funeral expenses of others who are injured on your property or caused by your activities on or off you property up to selected limits.

 

Loss of Use (Amount of coverage varies by Company, Nationwide is 100%)

 Pays for reasonable living expense if you are not able to reside in the home due to a covered loss.

 

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It should be noted that homeowner’s insurance coverage does not protect your home if it is damaged due to a flood.  Separate coverage for flood is offered through the National Flood Insurance Program (NFIP).  Many companies are authorized by NFIP to offer this coverage through a program called “Write Your Own”.  Nationwide is one of those companies authorized to offer this.

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Coverage Amounts and Deductibles

 

It is recommended you insure your home to 100% of the reconstruction cost estimate.  This is the cost to rebuild your home from foundation up with materials of similar kind and quality.

Choosing a deductible is a personal choice.  Remember, the deductible is the cost you will pay on any claim made.  The higher the deductible you have the lower the cost of insurance and vice versa.  Most homeowners carry a $1,000 deductible.  The reason for this is that you want your insurance to protect you on major losses and you will take care of the small ones.  It would not make sense to put in a claim for minor repairs under your policy as it will surcharge your policy for three years.  You will want to take care of this yourself and use your insurance to cover those situations where there is major damage.  Having a $1,000 deductible on a $10,000 loss would mean you would still have to pay the first $1,000, but your insurance would pay the rest.  (Providing it is covered in your policy).

 

Other coverages and features

 

There are several other coverages that are offered by insurance companies.  These will vary according to the company you deal with.  The following list is some of the optional coverages offered by Nationwide.

 

Replacement Cost Plus

 This can pay up to an additional 20% of the Dwelling coverage limit if the home is a total loss and additional money is needed to reconstruct the home.  The dwelling is required to be insured to 100% of the replacement cost.

 

Extended Replacement Cost on Contents

 This pays to replace or repair personal property without depreciation being taken from the value of the property.

 

Ordinance or Law

 This pays for increased expense to rebuild due to current building codes or ordinances.  An example would be if current zoning laws were require all new construction to have sprinkler systems.

 

Water Backup of Sewers

 This broadens the coverage for loss due to water backup through sewers or drains.

 

Scheduled Personal Property

 This provides additional coverage for personal property of higher values such as jewelry, watches, furs, etc.

 

Identity Theft

 This pays up to $25,000 for expenses incurred while restoring your identity and includes a service aspect to assist you with all tasks to restore your identity.  Credit monitoring for early detection is also included by enrollment.

 

Discounts/Savings

 

The Braun Agency, Nationwide offers ways for you to save money on your insurance through various discount/savings programs! In addition to the below listed, ask about alumni discounts, honors programs, trade organizations, etc. and see if those could save you too!

 

Home and Car

Protective Devices (Alarms)

Claims Free

Home Renovation

New Home Purchase

Age of Construction

Age of Insured

Affinity or Alum Discounts

Good Student

And LOTS more!

 

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The Braun Agency’s mission is to help you get from where you are to where you want to be financially by planning, achieving your plan and protecting your plan from unexpected events.  In the process, our goal is to deliver insurance services in a manner that exceeds your expectations.  See what The Braun Agency can do for you today. Give us a call at 757-452-4563 to speak with one of the licensed, professional members of our team or request a contact here. The Braun Agency. We’re on YOUR side. 757-INSURANCE.