What do Homeowners Polices and Swiss Cheese have in common?

That’s right they both have holes!

It is your agent’s job to ask the right question and fill in those holes.

Most people consider the home their largest asset, which makes homeowners insurance one of the most important policies you will buy. Having the right agent and company can be the difference between claims being covered, or making a big dent in your bank account.

1. Have an independent agent shop and compare.
Most insurance companies’ base polices will provide similar coverage, but there will be some differences. Companies enhance their polices by offering different coverage packages. These packages include additional coverage you may need at claim time. The additional premium is usually very minimal, and you will be glad you have it in the event of a loss.

2. Common coverage that is not included in your base policy.

  • Sewer Backup – If your sump pump fails, toilet backs up, washing machine drain isn’t working properly you could have a big mess. If you do not have this coverage you could be in trouble. Sewer Backup usually starts at a $5000 limit and can be increased. $5000 runs about $5 a month on average.
  • Replacement Cost – most polices included replacement cost on your personal contents, but some companies charge extra. If this is not on your policy and your personal property is lost, damaged, or destroyed it will be depreciated a claim time. It is very inexpensive. Ask your agent if it is included.
  • Earthquake Coverage – This is also a coverage that will need to be added. The price will vary and is based off the home value. The deductible is a percentage of your Dwelling Coverage. Ask your agent for more details.
    Jewelry, Firearms, Collectibles, etc. – While the base policy provides some coverage for these type of items there are limitations in the event of theft, or disappearance. Your agent should counsel you and make the appropriate coverage recommendations. Covering them properly is affordable.
  • Identity Theft – This coverage is not included on a base policy. With the amount of data breeching and hacking today it is a nice coverage to have. It typically runs about $25 a year.

There are a number of other coverage options that you may or may not need. Having an experience agent with access to the right policy for you is important. Provident’s agents will ask the right questions and tailor a policy to meet your insurance needs.
Contact us for a no obligation policy review.

HO-6 – Insurance

HO-3 – Broader policy that protects against all perils except those specifically excluded by the policy.

HO-5 – Premium policy that typically protects newer, well-maintained homes; it covers against all perils except those specifically excluded by the policyfor co-ops/condominiums, which includes personal property coverage, liability coverage and coverage of improvements to the owner’s unit. Insurance for the actual structure usually comes through the association.