How can I save money on home insurance?

Your deductible makes a big difference in the cost of your home insurance. By increasing from $250 to $500, you can save about 10%; a $1,000 deductible save closer to 20%.

How much coverage do I need?

It depends on what you would do if your house burns down. If you would want to rebuild a similar house, then you need to purchase replacement coverage, preferably with a built-in replacement cost guarantee. If you would be happy with a smaller house, then you can insure for as little as 80% of the reconstruction cost and still have any partial losses paid in full. If you are really on a tight budget, you can purchase a market-value policy, but these policies have more limits and restrictions.

What’s an “Insurance Score”?

Most insurance companies are now using insurance scores as a factor in determining rates for auto and sometimes home insurance. The formulas, which vary by company, use information from your credit history to establish an insurance score for you. Based on this score, you are assigned to a tier or rating group. Of course, many other factors affect your auto insurance rates, including your driving history, vehicles, and coverages selected.

Insurance scores are different than credit scores. Insurance scores use only those factors from your credit history that show a direct correlation to future claim potential. Insurance scores generally do not consider income, assets, or total debt.

What’s the difference between “full replacement” and “functional replacement”?

“Full replacement” coverage pays to repair your home with materials of like kind and quality. If you choose “functional replacement” coverage, repairs to your home will be made using modern, less-expensive techniques (8-foot ceilings, standard flooring, stairs, moldings, etc.).

What breeds of dogs are prohibited?

Each company has its own list of prohibited dogs. Almost all companies prohibit Pit Bulls (also called Staffordshire Terriers) and Rottweilers. Other breeds that are often restricted: Akita, Chow, Presa Canario, Sharpei, and sometimes German Shepherds.

Some companies just won’t write new policies with dangerous dogs or other exotic pets. Others build an exclusion into the policy forms.

Am I covered if I have a business at my home?

Businesses are not automatically covered. In fact, having a business on your premises can invalidate some of your coverages, including any garages or other buildings used for business or business storage.

In some cases, we can add business coverage right to your homeowners policy. Sometimes you will need a separate business policy. To find out the best solution for you, please give us a call.

What if I rent land out for farming?

You need to add farm liability to your homeowners, usually at a cost of about $50 or so.