what does your homeowner insurance cover? or what do you know of your homeowner insurance?

2 Responses to what does your homeowner insurance cover? or what do you know of your homeowner insurance?

1. markmywordz

   August 31, 2010 at 4:48 pm

   There are two kinds of homeowner’s policies and it is VERY important to know the difference.

   The first is called ‘actual cash value’. The other is called ‘replacement cost coverage’ Actual cash value is cheaper but there’s a big caveat. It will only pay whatever your home and stuff were worth at the time of the loss. If you home was worth less than what it costs to replace it then you will not get enough money to rebuild your home the way you had it before. Same for the contents. You only get the depreciated value of everything inside.

   Replacement cost coverage pays whatever it costs to replace your home in contents with materials of like kind and quality.

   In terms of what it covers….most homeowner’s policies cover the majority of perils most likely to damage or destroy your home with some exceptions.

   These ‘exclusions’ are things like flooding, earthquake, riot, nuclear war, vermin, mold, etc.

   It is important to ask an agent exactly what is covered when shopping for insurance and even more important to actually read your policy. That will specify exactly what is and isn’t covered.
2. grh602000

   August 31, 2010 at 4:48 pm

   Mine covers 100% replacement cost on anything inside the house and 500 deductable on the outside. The only things not covered are jewelry and guns if they are worth more than 1000, if over that you need extra insurance. Farm Bureau.