Replacement Cost of Home

Estimated Annual Premium

Year Built 2002 / Year Built 1965

• Dwelling Coverage - Refers to the real estate structure and permanent fixtures. Most companies insure for replacement cost however there is a limit to the coverage. An example would be homes insured for $200,000 plus an additional 20%. In this case the total available for replacement cost would be $240,000.

• Dwelling Extension - This is usually a percentage of the Dwelling Coverage and is included in the coverage. Can be increased if needed for detached real estate, but is included at a minimum at no extra charge.

• Personal Property - This is usually a percentage of the Dwelling Coverage and is included in the coverage. Can be increased if there is a need for higher limits of coverage but usually cannot be reduced.

• Loss of Use - This coverage pays for the extra expenses such as substitute housing if an owner has to leave their home due to an insured loss. This can be expressed in a dollar value for a limit or in a time limit.

• Liability - Included in all policies usually at a minimum of $100,000 or $300,000. The need for higher limits depends on the type of exposure. An example of a need for higher limits would be if your real estate included a swimming pool.

• Medical Payments to Others - This coverage is for injuries that happen to guests while they are visiting your home. Negligence is not required to access this coverage.

• Limits of Coverage - Most policies have limits of coverage on certain home items, such as jewelry, guns, silverware for theft. It is important to discuss these items with your agent.

• Replacement Cost - Most policies are written for replacement cost and for items that can be replaced. There is usually a time limit on replacement and there may be a requirement for proof of ownership at the time of loss. Keep records and/or photos.

• Endorsements - Most policies offer endorsements for an additional charge. You should discuss additional coverage for the following items:

• • Jewelry and Furs

  • Silver and Goldware

  • Firearms

  • Backup of Sewers and Drains

  • Business Property - If you keep business property on premise

  • Business Liability - If you have a business in the home

  • Loss Assessment - If you belong to a homeowners association with a pool or other liability exposure

  • Childcare Liability - If you take care of children in the home

  • Personal Injury Protection

  • Earthquake Endorsement

  • Flood - Cannot be endorsed - requires a separate policy

  Discounts to Ask About

  • Higher Deductibles - Most policies will offer a discount for higher deductibles. This is a good idea since it should reduce claim frequency and save you money on the annual premium

  • Home Alert - Ask about Home Alert discounts for alarm systems

  • Multiple Line - Ask about Multiple Line discounts for Home/Auto

  • Claims Free - Ask out claims ratings and claims free discounts

  Loss Preventions Tips

  • Turn off water to washing machines when not in use.

  • Check and replace washing machine hoses on a regular basis

  • Turn off water to toilets and other major appliances when leaving for a weekend trip or longer.

  • Don't run dishwashers before going to bed or leaving for work

  • Flat or built up roofs require maintenance every few years

  • Check your water heater for leaks on a regular basis

  Theft Losses

  • Many thefts are caused by people you invite into your home.

  • Keep doors locked and garage doors closed

  • If away from home arrange to have newspaper delivery stopped or donate to a charity while you are gone

  • Installing a home security system (this qualifies for a discount on the homeowner's insurance.

  Liability Losses

  • You are liable for your dog if it should bite someone

  • Your policy gives you liability coverage away from home (i.e. on the golf course)