Homeowners Insurance Overview
Cordova Insurance Agency knows your most valuable asset and investment is your home. It is where you spend the most time, turn to as a place of refuge, and a place to raise your family. While Homeowners Insurance is not required by law like Auto Insurance, it will likely be required by your mortgage holder to protect their collateral. Even if your home is paid for, Homeowners Insurance is highly recommended as it provides financial protection for your home and your valuable belongings should you experience a loss.
With that being said, Homeowners Insurance covers both your physical home and its contents as well as liabilities that can come about due to negligence on your part.
Why Homeowners Insurance is Important
Homeowners Insurance is essential because a home is the most significant investment in most peoples life. Besides the structure itself, It contains most of your prized possessions and belongings, so it is only natural that you would want to protect them.
Homeowners Insurance is also available to renters and tenants. While those who rent do not need protection over a building’s exterior, you will still want to protect your valuables if they are stolen or damaged, and you will also want liability coverage in case someone gets injured while in or on your premises.
Homeowners Insurance Coverage
Homeowners Insurance coverage is vast, including the following and more depending on the carrier selected:
- Coverage A – (Dwelling) This portion of your policy covers the physical structure of the home, the walls, the ceiling, and the floors. This coverage is designed to protect your dwelling from damages and protect permanently attached structures to the home, such as an attached garage. This is the coverage that would pay for your home to be rebuilt or repaired when damaged by a covered peril such as a tornado, fire or other covered perils.
Coverage B – (Other Structures) This portion of your policy covers detached garages, fences, sheds, decks, etc. The standard coverage limit is 10% of Coverage A, but is often higher depending on the insurance company. - Coverage C: This portion of your policy pays for repairing or replacing personal belongings that become damaged or stolen. Examples of covered belongings include your furniture, jewelry, and computer. Coverage C takes over when you have a loss due to a covered peril such as theft, fire, or vandalism. The standard coverage limit is 50% of Coverage A, but is often higher depending on the insurance company. There are two different payouts for Coverage C. One is Actual Cash Value (ACV), where you get reimbursed for items at their fair market value, which also includes depreciation costs. Another payout is Replacement Cost Coverage, which does not include depreciation. While Replacement Cost Coverage comes with a higher premium, it is highly recommended.
- Coverage D – (Loss of use) This portion of your policy is designed to protect you and your family in the event the home becomes damaged to the extent it is no longer livable. For example, if a water pipe burst and floods the house with water. This would force the homeowner to live somewhere else temporarily. This is where Coverage D comes in. The Standard coverage limit is 20% of Coverage A, but is often higher depending on the insurance company
- Coverage E – (Personal Liability) This portion of your policy protects the homeowner against accidents to others, on their property, due to the homeowner’s negligence. This coverage typically comes with a minimum of $100,000 in liability coverage. However, depending on the insurance company you are with, you have the option to increase this amount much higher for an additional premium.
- Coverage F – (Med Pay) This portion of your policy typically comes in the amount of $1,000 to $5,000 in coverage depending on the insurance company. This coverage can be used to pay for smaller medical-related claims such as ambulance and emergency room charges
Related Policies & Endorsements
Homeowners Insurance coverage is vast, including the following and more depending on the carrier selected:
- Replacement Cost Coverage C: Where your standard Coverage C limits coverage to the Actual Cash Value of your personal property, Replacement Cost reimburses you for the actual cost to replace the item lost. For example, if you bought a top of the line computer 3-years ago for $3,000 and it was damaged beyond repair due to a lightning strike, Standard Coverage C might only reimburse you for $300, which is what a 3-year old computer is currently worth. If you had Replacement Cost Coverage C, it would pay to replace the computer with a new computer with similar specifications, less any applicable deductible.
- Water & Sewer Backup: A water and sewer backup can be caused by a failed pipe or drain, which causes water to enter your home. This can result from so many factors, such as a rainy day or a clogged sewer line. Water damage is a common claim homeowners have, which can cause significant damage and mold buildup. It can ruin your floors and electrical systems, forcing you to renovate your entire home. Having water and sewer backup can protect your property but does not include a sump pump breakdown in some cases.
- Scheduled Personal Property: Homeowners Insurance protects your personal belongings, but scheduled personal property covers your high-value items. Examples include expensive and fine artwork, firearms, antiques, jewelry, coin collections, and cameras. Insurers will ask for an appraisal or receipt of such items listed as scheduled personal property. When it comes to these valuables, depreciation is not taken into consideration.
- Personal Injury: This type of insurance can often be confused with bodily injury or personal liability insurance. But, while bodily injury or personal liability insurance covers things like medical bills and legal fees if a guest is injured on your property, personal injury coverage covers something much different. Personal injury insurance covers things like:
- Libel and/or slander
- False arrest, detention or imprisonment
- Malicious prosecution
- Wrongful eviction or wrongful entry
- Associated legal costs
- Home Businesses: Many people have been working from home these days and turning their homes into their new workspace. With home business coverage, you can protect your important work files, inventory, and equipment. Be sure to discuss with your insurer how many employees you have, whether you will conduct meetings at your home, if company vehicles will be at your residence, and if you would need to shut down your business operation if the property happens to get damaged.
Renters and Condo Owners Insurance
When you own a home, you become responsible for both the interior and exterior of your property. However, as a condo owner or renter, you are generally only accountable for your unit’s interior and personal property.
Condo Owners Insurance helps pay for damages done to your inside unit and belongings. A condo association insurance policy generally covers the building’s hallways, common areas, and roofs. When you own a condominium, you typically only have to get your own Condo Insurance Policy, while the condo board takes care of the shared spaces.
Renters Insurance is for tenants who do not own the property but want to protect their possessions while inside the home they are renting. Renters Insurance reimburses for the replacement cost of property that gets lost or damaged on-site, but it does not cover damages to the structure of a building.
Areas We Serve
Cordova Insurance Agency is your go-to agency to advocate for all of your Homeowners Insurance needs. We are located in Merrill, Wisconsin, and service Merrill, Wausau, Tomahawk, Minocqua, Woodruff and surrounding areas.
Generally speaking, we make it our top priority to work closely with our clients from the first phone call throughout every process. We are here to explain claims, go through meticulous paperwork, and offer options. Our agents are great listeners and friendly advocates who work with over 100 great insurance companies. Give us a call at any time for an insurance quote, and we will do our best to guide and handle your inquiries and processes.
Final Thoughts
Cordova Insurance Agency prides itself on helping our customers feel comfortable and confident with their Homeowners Insurance. We aim to protect your home and assets and provide exceptional service to meet all your needs.
To learn more about Homeowners Insurance, contact an agent at Cordova Insurance Agency at (715) 536-9576. Our licensed agents will be happy to answer any questions you have.
