Home Insurance
Policy Types
- Homeowner - primary residence
- Tenant/Renter
- Mobile home
- Condo
- Seasonal (some restrictions may apply)
- Vacant while for sale or remodeling
- Farm (some restrictions may apply)
Definitions of Coverage
Not all homeowners have the same insurance needs. It is important that you understand the coverages homeowners insurance policies include as well as the optional coverages you can purchase.
Dwelling: provides property protection that protects your house and attached structures if damaged by certain events; including fire, wind damage and weight of ice, snow or hail.
- Different policy types are available depending on your preference - guaranteed replacement cost, functional replacement cost, stated value.
- For "stick built" homes, the reconstruction/replacement cost can be determined using a computer software that accounts for local building costs, size of home, exterior and interior features. For modular or manufactured homes, the policyholder must provide us with the desired replacement amount.
- Different policy types are available for either Named Perils or Comprehensive Perils (most common)
Flood: Your homeowners policy does NOT provide flood coverage. Determine if flood insurance is right for you: http://www.fema.gov/plan/prevent/property.shtm
Ask your insurance agent or insurance company representative if your home is in an area that is likely to be flooded. If it is, your agent may be able to help you get flood insurance. http://www.floodsmart.gov/floodsmart/
Other structures: provides protection to other structures at your premises that are not attached to the dwelling. Items covered include detached garages, tool sheds, etc. Coverage is normally limited to 10% or 20% of the Dwelling limit however more coverage is available for additional premium.
Personal Property: provides protection for the contents of your home and other personal belongings owned by you or family members who live with you. Coverage is limited on certain types of property that are especially susceptible to loss, such as cash, securities, jewelry, furs and guns. Depending on the policy type selected, replacement cost protection may be automatically included or may be available via endorsement for an additional premium.
Loss of Use: this coverage will help with additional living expenses if your home is damaged by a peril insured against to the extent that you cannot live in your home. These expenses include, but are not limited to, housing, meals and warehouse storage.
Personal Liability: this section of the homeowners policy will provide coverage in the event you or a resident of your household is legally responsible for injury to others or damage to others' property. We recommend a minimum of $100,000 and strongly encourage consideration of $300,000.
Other optional coverages are available as endorsements and include, but are not limited to:
- Enhancement endorsement - packages many additional coverages at a reduced premium such as sewer & drain backup, increased special limits on personal property.
- Water backup and sump overflow
- Incidental business - appropriate for home based business such as Gold Canyon/Mary Kay/Pampered Chef/Tastefully Simple and many small in-home business ventures.
- Earthquake
- Additional Dwellings
- Collectors items (commonly called floaters)
- Farm liability – depending on extent and type of farming
- Professional liability such as nurses, barber/beauty shop
- Siding/roof restoration
- Watercraft liability and/or watercraft physical damage
Home Inventory
Home Inventory Software (free) http://www.knowyourstuff.org/
A house fire is traumatic enough. Not having a good record of your belongings can only add to the misery. Keeping a home inventory of the items you have and their values will help you when the rebuilding starts. There are free downloads available from the Insurance Information Institute to serve as a guide to homeowners in order to have record after a loss.
A few simple steps can help when taking inventory:
- Don't put it off. Start with new items and their value, and then try to remember older items. An incomplete inventory is better than nothing at all.
- Use your camera. Take pictures or video of your home and write down descriptions to go with it.
- Keep it safe. Be sure to keep the inventory in a secure place, such as a fire box or safe deposit box.
This information is provided as a public service by Erie Insurance Group and your local ERIE Agent.
The information is intended to help minimize risks, but cannot be relied upon to eliminate all hazardous exposures.
6/06 © 2006 Erie Indemnity Company
Market Value vs Replacement Cost
A home is one of the largest investments you will make during your lifetime. It is important to protect this investment with up-to-date and adequate coverage. There are several changes that could affect your home's insurance coverage:
- Refinishing or remodeling
- Changes in the economy
- Inflation
To make sure your home is adequately covered at a time of a loss, it is important to know the difference between market value and replacement cost coverages.
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Market Value (or selling price) is determined by:
- Age and size of house
- Physical condition
- Location
- Cost of the land
- Market value may only represent one-half or one-third of the cost to rebuild
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Replacement Cost is determined by:
- Local construction costs for materials and labor
- Square footage of the home
- Year built
- Exterior Features (i.e. walls, roof, exterior trim)
- Style of house (i.e. ranch, two-story)
- Number of bathrooms
- Special features (i.e. fireplace, arched windows, any custom building)
- Recent home improvements
- Central air conditioning
- Attached garage
- Additional costs (i.e. debris removal, contractor and architect fees)
Replacement cost for a single home does not recognize the discounts on mass purchases that a multiple-home construction project does.
Contact Wilson Insurance Management for more information or questions regarding market value replacement cost.
This information is provided as a public service by Erie Insurance Group and your local ERIE Agent.
The information is intended to help minimize risks, but cannot be relied upon to eliminate all hazardous exposures.
6/06 © 2006 Erie Indemnity Company
ID Recovery
Identity Recovery Resources including Opt-Out and Free Credit Report
Identity Recovery Coverage Presentation
