Top 10 Questions about Homeowners Insurance:
Are there discounts available?
Discounts are available if you have higher deductibles, smoke detectors, sprinkler systems, fire extinguishers, dead bolt locks, hurricane shutters, or laminated glass. Bundling your homeowners with your auto or umbrella can also lead to a “bundled” discount. It’s our goal here at InsuranceShark to show you how to qualify and to be a better risk for insurance companies.
Are there deductibles and under what circumstances do they apply?
The policy comes with a deductible that you can request to be higher or lower and there are windstorm, or hurricane deductibles for policies issued in certain areas. Please see our discussion on insurance deductibles for more information.
Are the rates different in different locations, or how close the house it to a fire department effect premiums?
Yes, the rates are affected by local fire protection, age and type of building, and use of the building. They differ by company, state, and different factors insurance companies use to evaluate your home. Living in a hurricane, earthquake, or tornado zone will differ from the home in less hazardous areas.
Are the rates affected by the type of construction?
Yes. The rates are affected by the kind of construction, such as brick vs. frame. This relates to the combustibility and how flammable your home is. We are not suggesting changing your home construction to save money on homeowners, but it is a factor in the calculation by the insurance company.
Is mold covered under certain situations and is there a limit for mold damage?
Mold damage is covered if it is due to a covered event. Many policies have a mold limitation for the payment of remediation services. Your policy has to be reviewed for the specific language. Please Contact Us if you are having difficulty understanding your policy.
What exactly is covered?
The building and its’ contents are covered for the named perils. If it is an all risk policy every event is covered except for listed exclusions. In our discussion about the homeowners policy we discuss the perils and different forms.
What is excluded in the policy?
Some exclusions include flood, wear and tear, earth movement and acts of war.
Are certain items such as computers limited in coverage? Do you have samples of policy language with regard to these items?
Certain items such as computers, silverware, jewelry, guns, money, securities and others listed have monetary limitations. You maybe be able to buy a rider for these items. But do not assume all your property is automatically covered. For high net worth individuals, it makes sense to consider a company that focuses on high net worth individuals like a private client group. Your needs and coverage limits will differ from the average person, a policy and services must be tailored for you.
What optional, additional, or extended coverage can I purchase?
You can purchase an umbrella policy, or rider, if available; flood coverage through the National Flood Insurance Program in many communities, higher levels of liability coverage, lower deductibles, earthquake, coverage for business pursuits on the premises. Just ask the your agent or broker concerning any type of coverage you may need.
Is umbrella coverage available? Is it discounted in any way?
An umbrella policy or rider provides additional higher limits for liability coverage for your home, auto and watercraft. It may also provide coverage for events not covered by your homeowners policy. Please see our discussion about umbrella liability insurance for more details.