By JOSH UNDERWOOD
Owning a home is a big responsibility.
When it comes to insuring your house, homeowners insurance can provide a terrific bundle of coverages to protect against common types of losses.
Replacement cost coverage on your dwelling and personal property means that in the event of a covered claim, if you are replacing the dwelling and your personal contents, you have replacement coverage up to the limits of your policy. Some carriers even offer what’s called extended replacement cost coverage on the dwelling, which can provide an additional 20 percent or more, if needed.
If you have any outbuildings or a detached garage on your property, homeowners insurance automatically provides Other Structures coverage up to a certain limit. The same is true for personal property coverage, as it is automatically included on a homeowners policy.
Personal liability coverage on a homeowners policy typically starts at $100,000 and can be increased to higher limits for a small additional premium.
Deductibles on homeowners policies normally start at $1,000. Some carriers also have what’s called a wind/hail deductible, which is a separate deductible that applies only to claims involving wind or hail.
Beyond the base homeowners policy, other optional coverages can be added, such as earthquake coverage or sewer backup coverage. Additional optional coverages offered by some carriers might include sinkhole coverage, equipment breakdown coverage and service line coverage. It’s important to note that flood coverage is a standard exclusion on a homeowners policy and must be obtained through a separate policy, if desired.
Perhaps you own some high-value items. If so, you can choose to schedule those specific items on your homeowners in order to maximize coverage beyond the basic limits of the homeowners policy. The best thing to do is to just have a conversation with your agent about your policy and coverages.
Altogether, a homeowners insurance policy provides an excellent value for the coverage and is an essential component of the homeownership process and protecting one’s home.
Because owning a home is, after all, a big investment. It makes sense to make sure it is insured sufficiently.
(Josh Underwood is an independent agent at Cook, Downing & Underwood Insurance Agency, cduins.com, “The Friendliest Agency in Town”, 217 S. Green St., Glasgow, KY 42141. To learn more about homeowners insurance, give Josh a call at 270-651-2194. You can also email him at [email protected] for your insurance needs, including home insurance, auto insurance, motorcycle insurance, boat insurance, RV insurance and business insurance.)