Homeowners insurance, also commonly called hazard insurance by your mortgage company, is a type of property insurance that insures a private residence. It is an insurance policy that combines various personal insurance protections, which can include losses occurring to one’s home, contents, loss of use (additional living expenses), or loss of other personal possessions of the homeowner, as well as liability insurance for accidents that may happen at the home or at the fault of the homeowner.
The cost of homeowner’s insurance often depends on what it would cost the insurance carrier to replace the house (called Replacement Cost) and which additional endorsements or riders are attached to the policy. Replacement Cost is the cost it will take the insurance company to rebuild your house with the same like, kind and quality.
When comparing Homeowners Policies please keep in mind that not all of them are equal. There are different coverage forms and deductible options that some insurance companies include. For an example, one policy may have a Wind & Hail percentage deductible as opposed to the more common straight dollar deductible. Also, your policy is based upon you and your home, and not your neighbors; so comparing your policy premium to your neighbor or a relative that lives out of state may not be the best way to compare your cost.
Give our knowledgeable staff a call and we will be happy to discuss any questions and offer alternate proposal(s) for you to consider.