I’ve been sharing some developments on the home front in my Instagram stories lately. If you follow my stories this might not come as a surprise to you because I often share projects and specific design elements from my home. However, this is a little different.
Shockingly, we are considering moving to a new home. We were not seriously looking but we found a charming house on an oddly-shaped acre of land that’s speaking to us. It needs some major renovations and a bit of TLC to bring it up to this century, but we are lightly stepping into understanding what that would look like.
So, when I visited the COUNTRY Financial booth at the Naperville Wine Festival last week, I thought it might be time for a refresher on homeowners insurance since there is a good chance that I might need a new policy in the future.
Here are some highlights from my discussions with a COUNTRY Financial agent. These are points to consider when looking into coverage for a single-family home ONLY. If you want more specific advice for condos, townhomes and apartments contact COUNTRY Financial here.
Decide which kind of coverage you want
For your single-family home you have several coverage options, but basically you want to make sure that your home is covered from some of the major risks like lighting, fire, theft, vandalism, freezing pipes and some other things that are usually included in basic home owners policies.
Additionally, most insurance companies will offer extended coverage that will cover more risks to your dwelling such as power surges on your appliances and other accidents, contents and other structures on the property.
Make sure you understand all the different kinds of plans your insurance company offers and then go with one that will make your family feel the most secure in your home.
Also make sure you fully understand how the contents of your home are covered. Generally, they are not covered from all the same risks your dwelling is protected from unless you pay for a more premium policy.
Understand Actual Cost Value and Replacement Cost Value
Actual Cost Value (ACV) is coverage for your home and contents at the cost to repair or replace them, minus depreciation. This means you will not get the full replacement cost of your items when you first make a claim.
Replacement Cost Value (RCV) is the coverage for the cost to completely rebuild or repay for your home or contents.
Usually, you will receive ACV when making a claim until you replace or repair an item. Then your insurance agent will send you the additional funds for the RCV.
Determine if you want more liability and medical coverage
Most homeowner’s insurance plans will come with a specific amount of liability coverage. This coverage will help protect you if someone is hurt on your property, if you damage someone else’s property or if you’re sued for those damages. You can elect to have more coverage if you have a home business, have higher risk items on the premises, etc.
Medical coverage will cover someone else’s injuries if they are hurt on your property.
Take advantage of the discounting options
When you combine coverages through one provider – such as home owner’s insurance, auto and life – you may be eligible for certain policy discounts.
Additionally, you may be eligible for discounts if your house is newer, if it has newer wiring or specific shingles that are more resistant to hail. Make sure you look into all of these options to get the best policy for the best price.
Don’t expect to get flood insurance
Home insurance companies do not offer flood insurance. That must be purchased through the National Flood Insurance Program for homes that qualify. This is run through the federal government.
For more information on homeowner’s insurance, contact your COUNTRY Financial agent. Click here to find out about the policies you might be eligible for and to find agents in your area.
Click here for more home and garden tips.
I know I have it, but that’s it. I honestly don’t even know who my policy is through. Ugh! I need to find out.
I am also very clueless as to the details of our coverage. We generally left it up to our broker to make the big decisions and I hope we have the right coverage.
Thanks for this helpful info on homeowners insurance. It is something we have, but I have no idea exactly what coverage I’m paying for. Your post makes me think I should get our policy out and check into it.
Insurance can be so tricky. Thanks for laying out some tips, sometimes it’s so confusing, you aren’t sure what is included and what you need to add on.
Wonderful information! We have owned our home for almost 10 years but most of this information is new to me. I now plan to review our policy and talk things over with our agent soon.
Great information. There is so much to know! When we bought our new house almost 2 years ago we did alot of research on finding the right insurance company for us.
I never knew how picky insurance was until one day I switched. They started going over all the coverages and it blew my mind having not had known for years.
I recently learned the difference between homeowner’s insurance and a home warranty. Great information here, thanks!
We don’t own our own home yet but this is great info to have for when the time comes. Since I live in Canada it may be a little different when it comes to flood insurance.
These are all great tips. The one about flood insurance is particularly important. Having lived in coastal areas, it best to never assume.
This is such a great post and very informative. I know how important to have a home insurance but your post gives me a lot of information and understand about it.
Ugh. I get so confused by this insurance stuff! My husband handles most of it!
This is really helpful! Thank you for sharing these info!
Great tips! We still do not have insurance for our house but we are considering it. Better safe, right!
Great information! We have Country Financial Insurance and have been very happy with it.
It is so important to have homeowners insurance. Especially with all of the storms, fires, earthquakes and more that’s been going on.
This is such a helpful, informative post. Unfortunately, I learned the limits of my homeowner’s policy when I needed to make a claim. It’s so important to be an informed consumer!
Insurance has always seemed so confusing. This makes it the topic little more approachable.
We just bought our first home so I needed this! Thanks so much!
This is such a great post with important information! I didn’t realize that home insurance didn’t include flood insurance. That is good to know as is the difference between the different way you can have coverage for the house and the items in your home!
Right now I am dealing with home owners insurance and really want to yank my hair out…just got told the company we have is a pain but not really my choice as it’s my Grandmother’s home. So many stipulations and so many t ‘s to cross and I’s to dot. Finding out many don’t offer hurricane and flood insurance is crazy.
My husband usually is the one that knows about this but I really should know more so thank you for this! Very helpful!
I’m definitely going to bookmark this post for when we buy our first home!
To be honest, I have no clue about Home owners insurance. My husband took care of that and set everything up when we purchased our house.
Thanks for tips on understanding homeowners insurance. This is a detailed and informative post. Wonderful! I didn’t realize that flood insurance is often purchased separately. Now I know!! Thanks.
My brother bought his house outright but I was just talking to him about home insurance. I’ll recommend this company to him and see what he thinks.
Ok first of all do you live in Naperville?
My sister stays there and I was there just last month. What a small world. Great to get this insight from you.
Thanks.
Thank you for reminding me that I need to check my policy! I know that we have it but it was just one of those “get it because you need it” type of deals. Thought it was one size fits all haha.
My friend will be buying her very first home soon, as she just got married and needs a bigger place to live. Because of this, both she and her fiance want to learn about homeowners’ insurance and what to look for. It was quite helpful when you mentioned that a newer home will typically cost less to insure. These tips will help my friend greatly, so thank you for sharing them.