The Best Homeowners Insurance For You And Your Family
Expert Insight on Homeowners Insurance
Heidi Petschauer, CIC
President, Petschauer Insurance
It is important for every homeowner to be informed when purchasing their insurance, whether you are a first-time buyer or someone looking to replace their insurance coverage. Not all carriers and policies offer the same endorsed coverages. And, not all agents spend the time to assess your needs, educate and consult you so you can make good choices for yourself and your family.
We recommend and discuss the value & limits for adding these endorsements with all our clients:
– Guaranteed Replacement Cost on your Dwelling
– Contents Replacement Cost
– Additional Fine Arts Rider (Jewelry, Furs, Collectibles, Fine Arts, etc)
– Sewer Line
– Back up of Sewer
– Home Systems/Equipment Breakdown
– In-Home Business
Keep in mind, virtually all homeowner policies do NOT offer flood insurance which means it typically cannot be endorsed. So even if you do not live in a “flood area” (ie: near any significant body of water including the ocean, lake, river, or even a stream), you absolutely want to discuss the value and benefits of purchasing this additional policy.
Is there a common mistake that first-time buyers make? If so, how can they avoid it?
We find the common mistake that first-time homebuyers make is that they put the task of shopping for homeowners insurance at the end of the home buying process. They are so focused on the initial steps of setting up the inspection, contract, and satisfying the mortgage commitment, that the homeowners insurance is literally their last-minute item. This means they typically rush through this buying process, look for the “cheapest” coverage available and miss opportunities to be informed. Buying your homeowners insurance should be the first item on your to-do list when you go to contract. You may be buying a home in a “flood zone”, intend to do major renovations before moving in, setting up an in-home business, thinking of renting it out to others, or have a low “insurance score”. All these situations could result in exceeding the budget you had in mind for your home insurance. These situations require taking a proactive approach by contacting or seeking out a trusted insurance advisor to get educated and find the most comprehensive coverage at an affordable cost. Keep in mind, you also want to deal with insurance carriers that have an A or better AM Best Rating.
Are there any homeowners insurance exclusions that might be surprising to a first-time buyer?
Many first-time buyers believe that “everything” is covered when they purchase their first homeowners’ policy. The typical exclusions to be aware of are:
– Flood Insurance
– Earthquake Coverage
– Wear and Tear
– Pipes
– Damage from insects/rodents
– Valuable items: Jewelry, Furs, Fine Arts, Collectibles, etc.
– Any Business Pursuits, including Contents and Liability
– Guaranteed Replacement Cost
– Contents Replacement Cost
