Home
Insurance
The Leslie S.
Ray Insurance Agency, Inc. represents several different quality home insurance
companies. We can shop these companies for you to present you with quality
home insurance protection at a very competitive premium.
Here
are some important things to review when purchasing home insurance:
- Insure to
the full replacement (or reconstruction) value of your home and add an endorsement
called extended replacement cost coverage on the dwelling. This endorsement
will provide you with some coverage over and above your dwelling coverage
limit, if ever necessary. Note, your home’s replacement value has
little to do with market value, your tax assessment, or your mortgage amount.
Also note that most insurance companies will not provide the extended replacement
cost endorsement on older homes.
- Increase your
coverage if you remodel or renovate -- if you don’t you might find
yourself underinsured if you have a major claim and you very possibly might
jeopardize the extended replacement cost endorsement.
- Homeowner
dwelling coverage protects against fire, windstorm, snow and ice damage
and many other perils. Earthquake and flood coverages are excluded unless
purchased.
- Concerned
about a flood? -- understand what you are covered for (and not covered for)
before you buy. For example, flood insurance does not cover finished basements
or even personal property kept in basements.
- Concerned
about an earthquake? – add coverage for about $35 per year for every
$100,000 of home insurance coverage
- Cover your
personal property with the replacement cost endorsement to ensure that your
general personal property is not depreciated.
- Review the
policy limitations for jewelry ($1000), silverware ($2500), fur coats ($1000)
- “Scheduling”
personal property:
- Eliminates
the deductible
- Avoids
the policy limitation on those particular items
- Broadens
the coverage (includes coverage for misplacing the item)
- Understand
that there is limited coverage for business activities:
- NO liability
arising from business activitie
- $2500
on premises business personal property limit
- $250 off
premises business personal property limit
- You may
be able to add incidental business occupancy endorsement for $25 - $30
to extend premises liability for business exposures and cover business
property at home.
- Raise deductible
to $500 or $1000 (or higher on very high valued homes)
- Add the “package”
endorsement if offered by your company – usually $20 – 30 per
year and the coverage extensions are worth it – check it out
- Carry as
much personal liability as you can get -- $500,000 or $1,000,000 –
you will probably find the added premium for this valuable coverage to be
minimal.
- Strongly
consider purchasing a personal umbrella liability policy which will increase
the coverage for your homeowner liability, auto liability, second home liability,
and boat liability exposures.
Ideas
for controlling your homeowner insurance premiums
- Review your
policy with us every few years – programs change
- Are you getting
a “package” credit on your homeowner policy? Some companies
give a discount if they insure both your home and personal auto(s).
- Consider the
highest deductible that makes sense for you. Most of our home insurance
clients carry a $500 or a $1000 deductible.
- Credit for
alarms – make sure that you are getting the proper credit for burglar
and fire alarms
- Generally
the newer the home the broader the coverages available and the more competitive
the premiums
Problems
/ issues that could make it more difficult to obtain insurance or that could
increase your insurance premiums
- Homes on close
to the coast – and for some companies that could mean within one mile
of the ocean.
- Homes “out
in the woods” with no fire hydrant within site and with a volunteer
or non-existent town fire department.
- Some businesses
that are run out of the home.
- Homes that
may not be well updated with their electrical service
- Poor past
claim history
- Less than
satisfactory personal credit history
- Dogs of an
aggressive breed
- Trampolines
