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What to Look for in Your Homeowners’ Insurance Coverage

May 1, 2023


Protecting your property with homeowners’ insurance coverage is critical to safeguard your investment. This resource can help you avoid a severe financial loss if your property sustains damage. There are some things to ponder when looking at your current policy or seeking new homeowners’ insurance coverage.

Comprehending the Various Types of Homeowners Insurance Policies

All homeowners’ insurance coverage provides insureds with benefits to compensate them for property damage. If a property sustains so much damage that it is a total loss, a policy can compensate an insured for the full value of their home. However, bear in mind that there are several different approaches to valuation. Be sure to understand how a policy assesses value.

A standard endorsement typically offers benefits equivalent to your home’s current value. A carrier can determine this amount by considering the actual market value of your home. Ultimately, it might be more or potentially less than the monetary amount you originally paid for it. A carrier may also determine the actual value of your home by calculating the depreciation of your home and its contents.

Alternatively, homeowners coverage may compensate you for a home’s replacement value. It consists of the cost of rebuilding your home. Calculating this sum may entail examining how much contractors in your area charge for new construction based on square footage. In addition, you may elect to enhance protection with a policy that provides extended replacement costs, raising limits for reconstruction between 10% and 50%. 

Key Coverages and Exclusions in Homeowners Insurance Coverage

In considering what coverage to look for in homeowners insurance, it is essential to understand which forms of damage are compensable and which fall outside of the scope of a policy’s terms. In general, insurance policies for homeowners include damage resulting from fire, vandalism, or significant weather events such as a hurricane. Endorsements usually exclude claims arising out of flooding. They also do not provide benefits for damage attributable to improper home maintenance. 

Homeowners’ policies may also cover personal belongings within your residence within coverage limits. Be aware that a policy’s terms may stipulate that benefits for damage to personal belongings cannot exceed a specified percentage of the policy’s total limits. 

You may address gaps in a policy by purchasing supplemental endorsements that cover events such as flooding. Additionally, you can purchase an umbrella policy that increases your coverage for any portion of a claim exceeding the limits of your primary policy.

Liability Benefits in Homeowners Insurance Coverage

Beyond covering property damage, homeowners’ policies can provide benefits that protect you against personal liability. Property insurance may offer compensation if a person outside your household sustains an injury inside your home. When reviewing a homeowners insurance policy, confirm whether a policy offers these types of benefits and applicable limits.

In shopping for coverage, working with an agent with experience serving homeowners in your area is advantageous. A knowledgeable agent can help you look at your current coverage, identify possible gaps, and seek out the most competitive quotes for coverage.

About E.J. O’Neil Insurance Agency

Since 1898, E.J. O’Neil Insurance Agency has provided homeowners with reliable coverage and high-quality customer service. Today, we offer a variety of policies, including commercial, boat, automobile, homeowners, motorcycle, and renters insurance. Quotes are free by phone or online request, and we can provide notary and other services at our location. We compare prices with all of our insurance carrier partners to ensure you are getting the best price year after year. It is what helps us combat the rising cost of insurance for our customers. To find the right coverage for your needs, call 413-594-4757 or visit us online.