Life Events

Your home is probably your largest asset, and homeowner's insurance is what protects it. Good coverage is about more than the lowest premium. It means being sure the policy pays what you need when something goes wrong.

What a standard policy covers

• Dwelling: the structure itself.
• Other structures: detached garages, fences and sheds.
• Personal property: furniture, clothing and electronics.
• Loss of use: living expenses if you cannot live in the house after a covered loss.
• Personal liability: if someone is injured on your property or you damage someone else's.
• Medical payments: for minor injuries to guests.

Know what is usually not covered

Standard policies typically exclude flood and earthquake damage, and they may limit coverage for wear and tear, sewer backup and certain valuables. Flood insurance is available separately, including through the National Flood Insurance Program, and is worth considering even outside high-risk zones. Check wind and hail provisions, since some policies use a separate, higher deductible for those events.

Replacement cost or actual cash value

Replacement cost coverage pays to rebuild or replace without subtracting for depreciation. Actual cash value pays less, reflecting age and wear. Replacement cost costs more but usually serves you better. Make sure the dwelling limit reflects the true cost of rebuilding, which can differ from the market value of the home. Ask about extended replacement cost or ordinance and law coverage, which helps pay for upgrades required by building codes.

Set the right limits

Do a home inventory with photos or video so you can support a claim and decide how much personal property coverage you need. High-value items such as jewelry or art may need a separate endorsement. For liability, consider the amount of your assets and think about an umbrella policy for extra protection.

Ways to get better value

• Compare quotes from several insurers, using the same coverage and deductible.
• Choose a higher deductible that you can afford in an emergency.
• Ask about discounts for bundling policies, security systems, newer roofs and claim-free history.
• Make improvements that reduce risk, such as roof maintenance and water-leak detection.
• Look at the insurer's financial strength and claim-handling record, not just price.

Review it regularly

Review your policy every year, and after renovations, major purchases or changes in your household. Read the declarations page and ask your agent about anything unclear.

Taxes and insurance

Premiums on a personal residence are generally not deductible. Casualty losses on personal property are limited to certain disasters, and insurance proceeds can have tax effects if they exceed your cost basis. Keep records and ask us before you settle a large claim.

If you have questions about how a claim or a policy decision affects your finances, contact our office.