Home Insurance Quesitions

Home Insurance Questions

Who needs homeowner’s insurance and what is it?

Homeowner’s insurance is a very well requested insurance and a typical policy has two different sections. The first section insures the property and the second section offers personal liability coverage for the insured. Anyone who leases or owns the property will need homeowner’s insurance and it is often a requirement made by the lender as a stipulation for obtaining a mortgage.

What are the differences between “replacement cost” and “actual cash value”?

Losses covered under the homeowner’s insurance policy can be paid using cash or paid using an estimated “replacement cost”. When the “cash value” is selected, the policy owner can receive the amount of the damaged property. When the “replacement cost” is used, the amount reimbursed is equivalent to another item of the same value.

What considerations should I make when buying homeowners insurance?

Below is a checklist of things to keep in mind when purchasing homeowners insurance:

  1. The first consideration should be the amount and type of insurance needed. If your policy limit is not more than 80% of the cost of replacing your home, any losses may be subject to a coinsurance penalty. In addition, you should determine the amount of personal property insurance you will need as well as personal liability coverage.
  2. Second, think about what additions you may need on your policy such as an earthquake endorsement or personal property endorsement.
  3. Lastly, after deciding on the types of coverage, you can then choose which insurer to buy from.

For additional information and answers to your questions about insurance coverage, contact Lee Auto Insurance Agency. We look forward to providing you with the insurance you need and the customer service you can always depend on.