Home Owners Insurance HELP!

Home Owner policies come in 3 basic varieties HO-A, HO-B, and Ho-W. A is a fire and lighting policy - as in that's all it covers, just the box of the house for certain named perils like fire and lightning. B is more comprehensive, covers more perils and may have replacement cost on contents.

Ho-W is the most comprehensive and covers water damage. So 1st question, is it and HO-A, B, or W and what endoresements can be added?

Do I have full replacement cost on building and contents (this one is so important) it's the differance in getting enough money to buy a new couch and getting what your couch is actually worth.

How is water covered is also crucial. There is sudden loss - tub overflows, washing machine leak. That's almost alwats covered. Slow and repeated seepage - that's a slow leak that you dont find right away, like behind the shower wall or dishwasher. That has to be added by endorsement. And backup of sewers and drains.

Don't take a deductible higher than 1% of dwelling replacement cost. Or you will be out several thousand dollars the nest time you replace your roof.

No homeowner policy will cover flood or earth movement (earthquake) They have to be purchased seperatley. Flood through FEMA. FLood is any rising water, so if you live in a low lying area consider it. It's no more than $315 a yr unless you live ina 100 yr flood plain.

Go to your states department of insurance website. They should have a place where you can pick a few companies you are looking at and compare coverages side by side. They will also have a place where you can see consumer complaints and rankings of companies based on number of complaints. You can look at number of claims filed and $$$ paid out. That will give you an idea of who has best customer service and pays claims without hassle.

One warning I can give you....do not go with Allstate. They just changed thier policy to exclude replacement cost on your roof. SO, if you have a 10 yr old roof and get hit by a hailstorm, they will deduct 10 yrs of wear and tear off your roof. So, after deductible and depreciation, you will be left holding the bag to replace your roof. $8- $10,000

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Eagles:

Our homeowners insurance is through USAA..

What is the deductible?
Does it include a jewelry rider?
What is the maximum replacement value of the home to rebuild in case of a fire, etc.
You don't live in earthquake territory - however, as we witnessed this year - earth quakes happen everywhere - will they cover earthquake damage?
Water damage?
Mold?
If the house is condemned - will they cover living arrangements - if so - how much and for how long?
What does the insurance cover?
personal property insurance - does it cover replacement value or value at time of loss?

Please PM me if you have more questions. My neighbor and girlfriend just went through a house fire - see my post on Lessons from a House Fire to get more information on what to look for.

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We have Farmers and have done business with our agent for years.

For starters, there are certain levels of insurance required by law and your agent should be able to guide you on how much you need. You want a good balance of what you actually need so you are no over insured. If at all possible, never file a claim.

If you went the escrow route with your mortgage, then the payments are in your mortgage payment along with the yearly taxes. Personally, we don't believe in the escrow, we prefer to use that money ourselves and earn interest vs allowing the bank to use it for a year.

The costs of your insurance varies greatly on your mortgage amount, value of the house/property, materials used in construction, deductible, etc.

Im my area, northern burb of Dallas, I pay $2500/yr for house insurance BUT that includes a special rider for my jewelry of $900. IF you have anything valued over the limits specified on the basic policy, you'll need appraisels and a rider to cover yourself properly.

You can save some money if you have a high deductible, combine all of your insurance with the same agent (car, house, jewelry, umbrella, etc).

Good luck to you. Hopefully you have a knowledgable agent who will guide you honestly and be looking forward to years of good customer service with you.

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I don't know if this will be helpful, but we're with USAA and I just called them. They asked me a million questions and some of their questions prompted more questions on my end. Everything is covered for an amazing price and I wouldn't trust my home to anyone else. Their rates are very affordable as well!

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You can show them a copy of your old policy. They should try to give you the same coverage. Also remember that flood insurance is seperate, it goes through the government and takes about 30 days to start. If you live somewhere that could be flooded I would get it.

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There are certain states that now require bundling of car and home insurance or they will not renew the policy. Farmer and Allstate are two of them (in select states). So know that before you sign up, because you don't want to go through this again next year, if you aren't interested in changing your auto insurance.

In addition to what others have said, pay attention to replacement value. You want to know that they will replace at a future date what you lost, based on what stuff costs in the future, rather than what you paid for it before.

And while you are doing this, take the time to catalogue and take pictures of and keep receipts of what you have, if you have receipts. Descriptions and values of stuff is important, especially if you have artwork. Of course, this stuff needs to be kept in a different place, like a fireproof box or a safety deposit box.

Good luck with your search!
D.

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We went through GEICO and they found us Travelers.

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If your in michigan and around the metro area like shelby macomb or sterling heights or even if not she maybe able to help call sharon baker at focus insurance1-###-###-####. She will quote you and get th lowest price.

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Depends on the type of policy you get. Homeowners policy usually covers the building, contents (inside), liability, medical, outside structures.
Breakdown (example only)
House (building) $220,000
Contents (household items) $110,000 (more if you have expensive collections on floater policies)
Liability $100,000 (more if you have a dog/pool)
Outside structures $55,000 (storage sheds)
Living expense $55,000 (if you have to live out of house for repairs - fire)
Medical $5,000 (can be more or less)
Deductible anywhere from $500 to $2500 (you pay this amount) Just be sure can afford the dedutible you choose.
Content coverage goes with you if you have a son/daughter at college or if you have items in a boutique or consignment shop for sale.

Example for another policy would be for building (house), liability, and no contents coverage -- like renter's policy.

The bank doesn't care about what you have inside the house only that you cover the house for the amount of the loan. If you don't cover it, they will and it will cost you more when they find a carrier.

When you do your mortage and include it in escrow the payment for your insurance and property taxes are paid by 1/12th the amount for the year. I know some people "can" save the money due but many can't and this way they are guaranteed to have the money and payments made on time. If there is any "extra" money left in the escrow fund at the end of the year, it is refunded to you because they are not allowed by law to hold that money. A law passed many years ago. You are notified when the insurance policy is paid and when the taxes are paid.

Policy premiums may be lower if you have other policies with your insurance carrier (cars/snowmobilies/motorcycles/ATVs).

Good luck. I hope this helps any others. It's been a long time since I was in insurance but this is the basis of the homeowners policy.

Happy holidays from cooold New Mexico.

The other S.

EDIT: Tracy K -- I depends on the situation for the hail storm. We had two hail storms within two days last year where the area was declared a disaster and they paid for the roof to be replaced minus our deductible and the roof was 20 years old (new house). In fact all the insurance carriers (State Farm, Farmers, Allstate and others) had their reps out on roofs. If someone needed shingles they had to go to Amarillo or Lubbock to get them because there were none locally.

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I personally have been happy with State Farm for 45 years, have checked into other companies, but over all felt they have served me well. I have homeowners, car, universal life, mortgage insurance with them. They give breaks for non-smoking, accident free and multiple policies. I was on disability for several years and the mortgage insurance paid completely out over 3 years (life of the policy), and they issued a new policy for mortgage disability in case it would ever be needed again.. One of the best investments I ever made and they also have other services available as well, credit, banking, investment opportunities, financial planning.
Always good to do your homework and compare.

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Eagles, thanks for asking this, and thank you to all the answers so far! Im on my way to sign insurance papers for our new house today and had wondered what I should be asking and had no clue. Weve had insurance on our currant home but I have never really known what it covers and should know what the new house will have covered. Good thing I saw this. We have AAA for cars, and home so our price is good. It actually went down when we added the new house. I just need to find out what all it covers.

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