Home Insurance Primer

Home insurance rates have been going up across the country. The best way to save money on your home insurance is to package it with your auto insurance.

The first step for home insurance is figuring out the appropriate amount of coverage. Your Coverage A, Dwelling, amount should represent the “Replacement Cost” of your home. This should be the amount that it would take to rebuild your home if you were to suffer a catastophic loss. The “Replacement Cost” or Dwelling Amount should not be confused with the home’s Market Value.

Once you have the “Dwelling Amount,” the next three parts (B, C, & D) are usually percentages of this coverage amount.

 For example:

Coverage A, Dwelling, amount:                                                                      $300,000

Coverage B, Other Structures (10% of Coverage A amount):                   $30,000

Coverage C, Personal Property (70% of Coverage A w/Replacment)      $210,000

Coverage D, Loss of Use (20% of Coverage A amount):                             $60,000

Home insurance also provides you Liability Coverage (Parts E & F).

Part E, Personal Liability Coverage, protects you from on and off-premises liability claims against you & family members. We recommend limits of $500,000 per occurrence and we recommend you consider Personal Liability Umbrella Coverage that sits over these and your auto limits.

Part F, Medical Payments Coverage, is usually in the amount of $1,000 or $2,000. If provides Medical Payments coverage for anyone (except household members) injured on your property.  

For savings, we recommend you compare deductibles from: $500, $1,000 & $2,500 deductibles.