It's your home, and you want to protect it with the right homeowner's insurance policy. To do this, it's important to understand what a standard homeowner's insurance policy includes. There are four key components consisting of:

1. Your house: Coverage for the structure of your home.

2. Your personal belongings: Coverage for your personal belongings.

3. Liability protection.

4. Living Expenses: Coverage for living expenses in case you are temporarily unable to live in your home due to a fire or other insured disaster.

1. Your house

This part of your policy generally pays to repair or rebuild your home if it is damaged or destroyed by fire, hurricane, hail, lightning, or other disaster listed in your policy. It generally does not pay for damage caused by a flood, earthquake, or just wear and tear. When purchasing coverage for the structure of your home, make sure to buy enough to rebuild your home. Also, review this coverage on an annual basis to make sure you have sufficient coverage.

2. Your personal belongings

Your furniture, clothes, and other personal belongings are usually covered if they are stolen or destroyed by fire, hurricane, or other insured disaster. Most companies provide coverage between 50% to 70% (this is just an average; every policy is different) of the amount of insurance you have on the structure of your home. The best way to determine if this is sufficient is to conduct a home inventory, in case you need to increase your coverage. If you have questions about what is covered by a specific policy, contact us.

This part of your policy may also include off-premises coverage, which means that your belongings are covered anywhere in the world, unless you have decided against this coverage.

Expensive items such as jewelry and silverware are covered, but there are usually dollar limits if they are stolen. To insure these special items to their full value, consider purchasing a special personal property endorsement or floater and insure these items for their appraised value.

Trees, plants and shrubs are also covered under standard homeowners insurance. They are protected against theft, fire, lightning, explosion, vandalism, riot and even falling aircraft. They are not covered against damage by wind or disease.

3. Liability protection

Liability protects you against lawsuits for bodily injury or property damage that you or family members cause to someone else. It also pays for damage caused by your pets. So, if your child or dog accidentally breaks something in your neighbor's yard, you are covered. The liability portion of your policy also pays for both the cost of defending you in court and any court awards up to the limit of your policy.

Liability limits generally start at about $100,000. Many recommend that you have up to $300,000 in coverage. Some people feel more comfortable with more coverage. You can also purchase an umbrella or excess liability policy, which provides broader coverage, including claims against you for libel and slander, as well as higher liability limits.

Your policy also provides no-fault medical coverage. If a friend or neighbor breaks an ankle playing basketball in your backyard, he or she can simply submit medical bills to your insurance company. Expenses are paid without a liability claim being filed against you. You can generally get $1,000 to $5,000 worth of this coverage.

4. Additional living expenses

If your home is damaged because of a fire, storm or other insured disaster and you can't live in it, this coverage pays the costs of living someplace else while your home is repaired or you find another place to live. While your home is being rebuilt, hotel bills, restaurant meals and other living expenses are covered. Coverage for additional living expenses differs from company to company.

Footnote: This is a brief overview of the coverage that can be included in a Homeowner's Insurance policy. You should read a policy thoroughly before purchasing any insurance policy.

Are you renting an apartment? If so, keep in mind that it’s up to you to protect your personal belongings from damage or theft with renters insurance.

Your landlord insures the building in which you live. However, it’s up to you to protect what is inside your apartment. As a renter, you need insurance to cover your personal things, such as clothing, furniture, or electronic equipment.

Plus, renter's insurance protects you if someone gets hurt in your apartment or breaks something. For example, a friend visits your apartment and trips over a rug, breaking an arm. Not only may your renters insurance cover the medical costs (depending on the policy), but also the cell phone your friend broke when they tripped.

Personal property coverage

A renter's policy protects your things, such as an iPod or computer, from theft in your apartment or anywhere in the world. The coverage may extend to fire damage, weather damage, explosion, smoke, vandalism, and plumbing leakage.

Additional property coverage options

Depending on the extent of your possessions, you may require additional coverage for your individual needs. You can buy additional coverage for the following:

• Contents Replacement Cost: pays to repair or replace most personal property in your apartment with no deduction for depreciation.

• Valuable Items Plus: provides higher limits and worldwide protection for special property such as jewelry, fine art, cameras, computers, and musical instruments for an extended variety of losses.

• Additional Coverage Endorsement (ACE): extends protection or increases limits on special types of property (for example: jewelry or silverware). This coverage also increases personal liability coverage by $100,000 and includes coverage for personal injury.

Personal liability protection

If you are sued, your renter's personal liability protection helps cover the associated legal costs and related damages. Most renters policies provide $100,000 (minimum) of financial protection against liability claims and/or lawsuits brought by others for accidental bodily injury or damage to their property while

• in your apartment ,

• as a result of your personal activities, including most sports, or

• caused by your children or pets.

Additional living expenses

If you must move out of your apartment for a period due to a covered hazard such as fire, the policy might pay you up to 20% of the contents coverage for necessary additional living expenses (hotel, meals, laundry, etc.) while your damaged apartment is being repaired.

Improvements

Many renters spend considerable time and money on alterations or redecorating. Under a renter’s policy, you may apply for up to 10% of your contents coverage to repair or replace these damaged improvements.

Conducting a Personal Property Inventory

It's important to inventory your apartment and possessions. It will save you precious time and frustration later. A personal property inventory is important because it:

• Guarantees that you have sufficient coverage

• Makes it easier for you to file a complete and prompt claim, supported by accurate documentation

What is a personal property inventory?

A complete inventory includes the following information about each item on your inventory list:

• The room in the house where it's located

• Item description and quantity

• Purchase date

• Place of purchase

• Original cost

• Estimated current value

• Serial and model number (if applicable)

• Photograph(s) of each item

• Receipts and current appraisals for the most valuable items

No one can ever be prepared for a loss due to theft or damage, but make sure you take the necessary steps to reduce the stress from the aftermath. It’s only after a loss that many people find out they were not sufficiently covered.

When buying a home, you think about the mortgage and the bills associated with owning a home. But just as important is to figure out what your homeowners insurance will cost. It's especially important to figure out the cost of homeowners insurance to get an accurate budget of your living expenses.

What is the right amount?

The simple answer is that it depends. There are several factors that can determine how much you will pay for your homeowners insurance.

Choose a Deductible That's Right for You

Just like with a car, your deductible will impact the cost of your homeowners insurance. If you pick a plan with a high deductible, the annual premium for your insurance coverage most likely will be lower. However, if you have to make a claim for repairs to your home, your out-of-pocket cost will be higher too. On the other hand, a low deductible will cost you more up front, but you will pay a smaller amount if you have a claim.

Determine the Value of Your Home and Property

If you're buying an insurance policy to cover a home that's worth $250,000, you're going to pay more than someone whose home is worth half that amount. A solid assessment of what your home is worth will help determine the right amount of coverage you need.

The value of your personal belongings also has a lot to do with the value of your home. If you're living in a home worth $150,000, but your belongings are worth $50,000, you will want a policy that covers both these amounts. Otherwise, if something happens, you could still be at a loss, even with insurance coverage.

Your Claim History

Unfortunately, the price you pay for homeowners coverage can also be affected by your past insurance history. Homeowners who had fewer claims typically pay less for insurance than those who have more claims. One of the considerations that all insurers have to keep in mind is your level of risk to the insurance company.

Also consider

• Are you buying an older home or a new home? That too will impact your policy.  

• Is your electrical and plumbing reliable?  

• Is the house built to specific codes for maximum safety?

• Do you own a dog? If so, what breed?

There's so much that goes into determining the cost of homeowners insurance. It's definitely worth contacting us to help determine the coverage that is right for you and within your budget.

With spring, we get warmer temperatures, rain, and melting snow. And, until the ground thaws, melting snow and rain can’t be absorbed. Once it melts, the water can overflow streams, rivers, and lakes, flooding nearby homes and businesses.

If you are in an area that may be susceptible to flooding, consider giving us a call to discuss your flood insurance needs.

What is flood insurance?

• Flood insurance is a special policy that is federally backed by the National Flood Insurance Program (NFIP).1

• You may buy flood insurance that covers up to $250,000 for flood damage to your home. A standard flood policy will cover structural damage to your home, including damage to your furnace, water heater, air conditioner, floor surfaces (carpeting and tile), and debris clean up.

• For an additional premium, you also may buy flood coverage for up to $100,000 of damage to the contents of your home due to a flood.

• Coverage is available up to $500,000 for non-residential buildings and their contents.

The National Flood Insurance Program (NFIP) defines flood to be a general and temporary condition of partial or complete inundation of two or more acres of normally dry land area or of two or more adjacent properties (at least one of which is your property) from:

• overflow of inland or tidal waters,

• unusual and rapid accumulation or runoff of surface waters from any source,

• mudflow, or

• collapse or subsidence of land along the shore of a lake or similar body of water as a result of erosion or undermining caused by waves or currents of water exceeding anticipated cyclical levels

We can help determine if flood insurance is available to you and then help you buy NFIP flood insurance or determine the best options for your property.

Remember to Plan Ahead

It is very important to plan ahead. Keep in mind that a flood insurance policy will not go into effect until 30 days after you buy the policy.

(1) For more information, visit www.floodsmart.gov

Do you live in a condo? If so, keep in mind that your condo association coverage will only cover the exterior of the condominium. When it comes to your home, condo insurance will cover your unit, protecting you and your home, everything that the condo association’s master policy doesn’t cover.

What does condo insurance cover?

Condo insurance provides coverage for the inside of your condominium. Depending upon the specifics of your condominium association’s master policy, your condo insurance may include coverage for:

•  interior walls,

• appliances,

• personal property and valuables.

In addition to covering your belongings in the event of a loss, your condo insurance also protects you against liability claims if you are responsible for another person’s injury or property damage, or you have legal fees to pay due to a lawsuit. Condo insurance will protect you from potential losses, such as:

• theft of or damage from fire,

• liability claims and lawsuits if someone is injured in your condo or

• you are responsible for damage to someone else's property.

Because liability claims may lead to lawsuits, it is important to evaluate the amount of coverage you need to protect yourself financially. For complete protection, many people purchase umbrella liability policies.

How Much Condo Insurance Should I Have?

One of the first questions condominium owners ask is, “How much condo insurance should I get?" You can get a rough idea of how much insurance you need by making an inventory of your personal items and estimating how much it would cost to replace them after a burglary or fire. Certain valuable items may need special or additional coverage.

Consider the following:

• You have $10,000 worth of jewelry, $20,000 worth of furniture, and another $20,000 worth of electronics, clothing items, and other personal items.

• Make sure that your total coverage limits are set high enough so that there aren’t any items that exceed the per-item limit. If you have a piece of art worth $5,000, but your per-item limit is $1,000, your insurance is not adequately covering your items.

• Once you have this inventory, it will be easy for us to determine how much coverage you will need.

To find the most affordable coverage that matches your specific needs, give us a call today to get the right condo insurance policy to protect your condo investment and personal assets.

What is peace of mind worth to you? For some, it’s knowing that they are protecting their assets and future with personal umbrella liability insurance.

Umbrella insurance is designed to give you added liability protection above and beyond the limits on your homeowners, auto, and other personal insurance policies. With an umbrella policy, depending on the insurance company, you can add between $1 million to $5 million in liability protection. This protection is designed to take over when the liability on other current policies has been exhausted.

What does this really mean?

Liability insurance is the portion of a homeowners or auto policy that pays for expenses such as the injured person’s medical bills, lost wages, or damages to a car due to the person at fault. The liability portion of an insurance policy also covers legal expenses if the negligence results in any court proceedings. After adding up all of the medical expenses for the injured and the legal fees, the standard liability in one’s homeowners or auto policy may not be sufficient.

Almost every state has financial responsibility laws that hold drivers accountable for bodily injury and property damage due to a car accident for which the at-fault driver could be sued for damages. Consequently, the at-fault driver's personal assets could be seized as a result of a lawsuit. Similar laws apply to homeowners, boat owners, and motorcycle owners.

A personal liability umbrella insurance policy gives you added liability protection without much added cost. Having the added protection of an umbrella policy is coverage you shouldn’t think twice about, especially for the extra peace of mind it provides.

Do You Have Coverage in Case a Disaster Hits?

Sitting in your home right now, do you feel confident with your level of insurance coverage?

Homeowners insurance covers the most common dangers you will probably be exposed to. Fire, lightning, and internal explosion (like a furnace exploding) are examples of threats covered on most homeowners insurance policies. However, there are other dangers that you might consider worth adding to your homeowners policy.

Here are some common dangers that usually are not covered under the traditional homeowner’s insurance policy that you may want to consider:

Floods: For insurance purposes, a flood is considered temporary extra water on land that is usually dry. Flood insurance is a separate policy issued by the National Flood Insurance Program or NFIP. Flood insurance is only required if the property is located in a floodplain. You can also learn more about preparing for a flood, plus other helpful information.

Earthquakes: Most people don’t realize just how many fault lines exist across the U.S. You can add earthquake insurance with a separate policy or as an endorsement to a current homeowner policy.

Mudslides: Coverage for mudslides usually is not covered under your homeowner’s policy. It probably isn’t even something you would think about. But, depending on where you live, mudslides could be an annual threat. For that reason, it is important to understand your coverage and be careful not to get "mudflow" and "mudslide" mixed up. Flood insurance will cover mudflow but not a mudslide. Sometimes it's complicated to determine how much of your home was hit by a mudflow and/or a mudslide so having protection for both (getting flood insurance and mudslide insurance) may be the best way to cover any gaps.

Having a policy for a catastrophic event may not be uppermost on your mind. But it is definitely worth discussing with your insurance agent, who can help you make a decision on what makes sense for your home.