Personal Insurance
Homeowner Insurance

Why do I need insurance for my home or condo?

For most people, their home is their single most valuable possession - and their biggest investment. That's why you want to make sure you're protected if your home or possessions are damaged in some way. Whether you're renting an apartment or have just bought an estate home – there is a wide range of home insurance packages that are designed to protect your investment

Homeowners insurance protects you financially if something unexpected happens. It is basically designed to bring your home and possessions back to the same condition they were in before a loss occurred.

If you were to suddenly lose your home due to fire or hurricane or have your contents stolen or damaged, you probably could not afford to replace everything all at once. And if a guest in your home is injured or somebody sues you for an injury or damage caused by you or your property, the cost of defending that suit - regardless of the outcome – could run into the hundreds of thousands of dollars.

While it may be unpleasant to think about fire, theft, storms, and other "uncertainties of life," let's face it, they are there and things happen. That is why it is important to choose an experienced agency like Statewide Insurance Group to help you select and understand your coverage based on your unique needs.

Homeowners insurance is even required by most lenders as a prerequisite for obtaining a mortgage. Most mortgage companies will not lend the large amounts of money needed to finance homes at today's prices without requiring an insurance policy to protect that investment.

What does homeowner insurance cover?

In addition to traditional homeowner coverages, Statewide Insurance Group has the experience and knowledge to assist you with property that requires special consideration, such as coastal property, high-value homes, seasonal dwellings, and rental property.

While homeowners’ policies can vary greatly between carriers, the following coverage definitions should help you to better understand your homeowners policy:

• Dwelling Coverage
  Your policy refers to this as "Coverage A". This coverage is the dollar amount carried to cover your home and any structures attached directly to it. Ideally, the amount of coverage you carry should equal the current cost of rebuilding your home after a total loss. Most policies carry replacement cost coverage (claim is paid with no deduction for depreciation) subject to your policy limits.
   
• Other Structures Coverage
  Your policy refers to this as "Coverage B." This covers other structures set apart from the dwelling on the residence premises (such as a detached garage, shed, or fence). This coverage applies up to the limits provided in your policy and can be increased if necessary.
   
• Personal Property Coverage
  Your policy refers to this as "Coverage C." This coverage provides worldwide coverage for personal property owned or used by the insured. This is usually referred to as your “contents.” Usually this includes replacement cost, subject to your policy limits. Special limits apply to certain items such as jewelry, watches and furs.
   
• Loss of Use
  Your policy refers to this as "Coverage D." This coverage is available when you cannot live in your home due to a covered loss. It pays living expenses exceed your normal living expenses and goes up to the limit provided in your policy.
   
• Liability/Coverage
  Liability coverage protects you in two ways. First, it provides for your legal defense against a liability claim--whether the claim is legitimate or not. Second, it will pay any court judgments against you up to the policy limit.
   
• Medical Payments
  This pays emergency medical bills for anyone injured on your property or any injury caused by a member of your family or a pet, regardless of where it happens. All bills are paid, up to your policy limit, whether or not you're legally responsible.
   
• Optional Coverages
  Most homeowner policies have a number of optional coverages (also called endorsements) which enhance your policy either by adding, increasing, or removing certain coverages or restrictions. Some of the more common options include earthquake coverage, broadened coverage for contents, valuable items coverage, water back up of sewers or drains, guaranteed replacement cost, and special wind deductibles.
   
• Replacement Cost versus Actual Cash Value
  Replacement cost pays the cost to restore or replace damaged property without the deduction for depreciation. Actual cash value is replacement cost at the time of loss, less depreciation.

Why do companies give discounts when you have both auto and homeowner’s coverage with them?

When people have both auto and homeowners with the same company, both you and the insurance company win. The company wins because it saves money by packaging coverage. The initial cost of writing a new policy is very high. Companies don't generally show a profit on a policy for about three years. (This also explains why many companies give customers a credit for renewing their policy.)

Another factor is that people who have both policies with the same company are more likely to be long-term policyholders, which is cost-effective for that company. The policyholder wins because of the discount (and usually an additional discount upon renewal) and the convenience of having to deal with only one company.