Bogey Lowenstein's house party in 10 things I hate about you was quite wild. Surely Bogey didn't expect
it to get out of hand and end up with a broken window, but life is unpredictable. Are you prepared for those
unpredictable events? Let's talk about homeowner's insurance so you can get prepared!
The important factor with homeowner’s insurance is your needs. Coverage can vary greatly depending on
the size and age of your home as well as the possessions within your home. At Nevin and Witt, we pride
ourselves on shopping around to find you the best fit for your needs. We have nearly ten different providers
to choose from, including: Safeco, CIG, and Mercury Insurance Group.
Discounts are available in many ways. Bundle your home & auto policy for a multi-policy discount.
Choose a higher deductible for a discount. Install an alarm system for a discount. Have you never had a
claim or loss on your homeowner’s policy? There’s a loss free discount for that.
Choosing your limits is dependent on the replacement value of your home (i.e., what would it cost to build
your house from the ground up, as of now?) This has nothing to do with the market value or the price you
paid for your home. The agent writing your policy (hopefully at N&W) will receive information from you about
your home and plug it in to determine appropriate limits.
Dwelling & Other Structures
Of course, homeowner’s insurance covers property damage to your home. Examples include fire, a falling tree,
snowstorm, or explosion (and more). Usually, other structures are covered at 10% of the replacement value
of your home (e.g., a shed or detached garage).
Personal property is also covered on your homeowner’s policy, including: clothing, furniture, electronics, and
jewelry. This coverage is usually 50% of the replacement value of your home. But, maybe you have an expensive
item, say an engagement ring or an original piece of artwork. These kinds of belongings should be appraised and
scheduled on your policy so the replacement value of those items isn’t taken away from other personal property.
Something to note, though, is that personal property is covered when you take it with you as well. For example,
maybe you go on vacation and your camera gets broken or stolen, that would be covered. Maybe your cell phone
gets stolen out of your car; that would be covered.
Loss of Use
If your home is damaged and unlivable, loss of use covers living expenses, such as alternate housing and food.
Usually the limit is 20% of the dwelling coverage.
Homeowner’s Insurance also covers personal liability and medical payments to others (who might be injured
on your property). For more information regarding coverage, visit insurance.ca.gov.
What isn’t covered?
Termite damage, rats, mice or insects are not covered; mold and leaks are not covered. Also, flood and
earthquake damage requires additional coverage. For more information on that kind of insurance, visit our previous post.
Have questions regarding homeowner’s insurance? Contact Nevin and Witt at 1-800-247-9889 to speak with an agent.