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Your home is probably the single biggest investment you'll ever make. James J Sullivan Insurance can help you carefully choose the insurance that covers your home!
What does homeowners insurance cover?
Homeowners insurance differs slightly from company to company, but in general, most policies cover the following:
- Your home and attached structures, such as a garage
- Structures located on your property, such as a shed, swimming pool, unattached garages and fences
- Personal property, including clothing and furniture
In addition, homeowners insurance typically includes personal liability insurance that provides coverage for you or a family member sued for negligent acts that results in another person's accidental injury or in property damage. It will also include medical payments to non-family members injured on your property.
How much homeowners insurance should you have?
To determine how much insurance you need, you first have to calculate how much it would cost you to rebuild your home based on current prices. Most homeowners' policies require you to insure a percentage (at least 80%) of the replacement cost of the home (subject to limit on policy) less the deductible in the event of a loss. Some people discover too late that their property is underinsured. When that happens, the situation is very different. For example, if your home is insured for less than 80% of its replacement cost, your insurance company will either pay the actual cash value (replacement cost minus depreciation) or the amount in proportion to the difference between 80% of the replacement cost and your actual policy limit, whichever is greater.
At James J Sullivan Insurance Agency, we have the tools to help you calculate how much coverage you need. Please call or Email us with questions regarding your homeowners insurance coverage.
It's not just the structure you want to insure –
It's also the personal possessions inside
A lot of people insure the contents of their home for 50% of the amount for which their home is insured. Others find this 50% coverage insufficient. What should you do?
We suggest you do a room-by-room inventory of your belongings – your jewelry, rugs, clothing, furniture, glassware, silverware and so on. This way you will be able to carefully estimate the total value of your possessions and determine adequate coverage. The inventory also assures you a faster, more accurate claim adjustment in the event of a loss, as well as a fair settlement.
Personal Liability Insurance:
It's part of the package
So far, we've looked at coverage for your home and personal possessions. But what if a guest in your home should fall down the stairs and suffer injuries that require medical attention? Who's going to pay?
Personal Liability Insurance provides medical coverage for claims made against you by someone either unintentionally injured on your premises or accidentally hurt by a member of your family. If the person is injured or his property is damaged because of negligence by you or a family member, personal liability insurance will also pay for your legal defense and any resulting court judgment against you (up to the limit stated on your policy.)
5 Commonly Asked Questions
Does my homeowner's policy coverage apply to liability that results from the use of my car? No. Automobile coverage is not included in you homeowners policy – that requires a separate automobile insurance policy. On the other hand, liability resulting from the use of certain small boats is covered under homeowners insurance. Best to contact us for more information on boat coverage.
Each spring we landscape our property. Are our bushes and lawn covered under our homeowner's policy? Yes, to a degree. Trees, plants, shrubs and lawn are covered for a specific amount for specified perils listed in your policy.
If I add an addition, will my homeowner's policy cover it? Yes. In addition to construction materials, your homeowner's policy will cover any additions, repairs or alterations. However, since you may require additional coverage, you should report major changes to your agent.
Is my swimming pool covered? Yes. Coverage is extended to swimming pools, whether they're aboveground or in-ground.
What's the most frequent cause of claims made on homeowners' policies? In terms of numbers, the answer is theft. And you, the policyholder, can take precautions to guard against it. Knowing how burglars operate and what they're most likely to steal is an important first step in preventing loss and thereby reducing insurance costs. For example, since money is highly susceptible to theft, only a very limited amount is covered. We advise you not to keep large amounts of cash at home.
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