Do I really need insurance for my home?

Insurance is your protection against the uncertainties of day-to-day living. For most people, their home is their single most valuable possession - and their biggest investment. Homeowners insurance protects your investment as well as you, the members of your family and your household possessions.

If you were to suddenly lose your home due to fire or a tornado or have the contents damaged or stolen, like most of us, you probably could not afford to replace everything all at once. And if somebody sued you for an injury or damage caused by you or your property, the cost of defending that suit could run into thousands of dollars in legal fees - and are regardless of the outcome of the suit.

All of these situations are covered by the homeowners package policy. While it may be unpleasant to think about fire, theft, and other "uncertainties of life," let's face it, they are there and things happen.

Yet another reason you need to carry homeowners insurance is that mortgage lenders require it. No mortgage company will lend the large amounts of money needed to finance homes at today's prices without requiring an insurance policy to protect that investment.

Homeowners Insurance Coverage

Your homeowners insurance is important; it protects what is probably your greatest asset. The following coverage definitions should help you understand your homeowners policy--but be sure to consult your insurance company representative to assure that you have the right coverage for your needs.

Dwelling Coverage:
The dollar amount carried to cover your home and any structures attached directly to it. Ideally, the amount of coverage you carry should equal the cost of rebuilding your home after a total loss.

Other Structures Coverage:
Covers other structures set apart from the dwelling on the residence premises, such as a detached garage. This coverage applies up to the limits provided in your policy and can be increased if necessary.

Personal Property Coverage:
This coverage provides worldwide coverage for personal property owned or used by the insured.

Loss of Use:
This coverage is available when you cannot live in your home due to a covered loss. It pays living expenses which go over and above your normal living expenses up to the limit provided in your policy.

Liability/Coverage:
Liability coverage protects you in two ways. First, it provides for your legal defense against a liability claim--whether the claim is legitimate or not. Second, it will pay any court judgments against you up to the policy limit.

Medical Payments:
This pays emergency medical bills for anyone injured on your property or any injury caused by a member of your family or a pet, regardless of where it happens. All bills are paid, up to your policy limit, whether or not you're legally responsible.

Homeowners policies have many other optional features available to you depending on your individual needs. These include earthquake and scheduled personal property coverage.

The program features or coverage descriptions above are general and for information purposes only. Actual claim coverage in the event of a loss would be determined by your policy's terms and conditions.

Flood Insurance

You may be living outside of what's mapped as a flood-hazard area, but you have no guarantee that your home won't be hit by a flood. Weather experts say that almost all areas have some risk of flooding.

Homeowners policies don't cover flood losses -- but coverage is available at reasonable rates under the National Flood Insurance Program (NFIP). For homeowners in low- to moderate-risk areas, it comes at a very low cost. Nonresident building owners can purchase upto $1 million of Flood insurance to protect their building and its contents. Renters haven't been left out. Their Homeowners policies (also called Renters or Tenants policies) are different from standard Homeowners because the don't cover the building -- but they're similar in that they don't cover flood damage. Renters can purchase NFIP insurance to protect their personal property.

You may wonder, "Why should I get NFIP Flood insurance when the Feds always help people out after a flood?" Well, federal disaster assistance is some help, but it's far from a solution to serious flood damage. Often it doesn't kick in unless a major disaster has occured -- so it wouldn't cover the damage you suffer when, say, a creek backs up. The amounts to very little in cash and is sparingly granted. Loans must be paid back. If you live in a designated flood zone and don't have NFIP insurance, your not even eligible for the federal loan program. About 80 private insurance companies are partnering with NFIP to offer Flood insurance. Call us. We can set you up with insurance for a rainy day.