Homeowners Insurance

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Homeowners insurance is an insurance policy that provides financial protection against accidents and damages involving your house. It covers your home, as well as your personal property, and can provide liability coverage if someone is injured on your property.

Once you have purchased a homeowners insurance policy, you are responsible for making regular premium payments. Then, in the event that a covered event damages your home or other covered property, you can submit a claim. After you have met your deductible, coverage will apply and your insurance carrier will pay to repair, replace, or rebuild based on your elected limits.

Your homeowners insurance policy coverage will depend on the type of policy, as well as the specific terms of that policy. That being said, most standard policies include four basic types of coverage:

• Structural Coverage: This coverage protects the physical structure of your primary dwelling and other structures on your property.
• Personal Property Coverage: This coverage is for items in your home that become damaged or destroyed by a covered event.
• Liability Coverage: This coverage protects you in the event you are deemed legally liable for an accident that takes place on your property which injures another person or damages their property. It commonly covers medical bills and legal fees.
• Additional Living Expenses: This coverage helps to pay for your living expenses if you are unable to live in your home for a period of time due to damage caused by a covered event.

Additionally, it may be possible to purchase riders or amendments that add other forms of coverage to your policy.

While individual policies vary, homeowners insurance typically doesn’t cover damage caused by:

• Flooding
• Water or sewage backup (very common addition)
• Termite damage
• Rodent and pest damage
• Earthquakes
• Acts of war

Additionally, the personal property coverage offered by most homeowners insurance policies has low limits that may not be enough to cover valuable items like jewelry, guns, or collectibles. If you have items whose value exceeds your coverage limits, be sure to ask for additional coverage.

In many cases, you can purchase additional coverage which may address some of the exclusions listed above. Flood insurance and earthquake insurance, for example, are very common.

You should aim to have enough structural coverage to rebuild your home in the event of a total loss.

At Wessler Bros. Agency, a replacement cost estimator is used to determine this value by knowing the square footage of the home, roofing material, as well as any upgrades or additions. The dollar amount will vary depending on the size and construction grade of your home and the cost of building materials. 

If you have a mortgage, your lender will have their own coverage requirements to consider within the terms of the loan.

How much personal property coverage and liability coverage you need will depend on your own unique circumstances.

We suggest considering these key questions:

• What is the estimated cost to replace, rebuild, or repair your home - the “replacement cost”?
• What other structures are on your property (garage, shed, fences, etc.)?
• How much deductible can you afford to pay out of pocket during a loss?
• What are your valuables and their worth?
• Do you work from your home?
• Do you qualify for discounts or have the ability to bundle policies?
• What are the coverages required by your mortgage lender?