If you are thinking of a home purchase in the near future you will also be purchasing homeowners insurance.
Homeowners insurance is a very important part of home ownership. I find that a lot of people do plenty of research before making a home purchase but they don’t really find out very much about the homeowners insurance coverage they are purchasing. So I asked my insurance agent Rhonda Runge with Serna Insurance if she could point out the top 3 things people need to know about homeowners insurance.
1. When a claim is made and even when the policy has replacement cost provisions, the initial payout is based on “actual cash value”. Once final receipts are obtained giving evidence of completion of the work or a personal item is replaced, then the rest of the proceeds are paid out. Remember that in order to be reimbursed for any type of loss (especially personal property), it will be your responsibility to show proof of prior ownership with either receipts, photos or a combination of both.
2. Let’s say that you have a claim for fire that damages your flooring. You originally had carpet and now you would like wood instead. Since the purpose of insurance is to “make you whole”, the carrier will reimburse you what it would take to replace the carpet only. If you want to upgrade to wood, that is fine, you will just be responsible for the extra cost.
3. The “limits” of coverages are just that. For instance, you may be covered “up to a limit of $200,000” for Coverage A, which is the dwelling. What this means is simply that. If the cost to replace your dwelling is only $190,000 then that is what will be paid.
If you like to know more about homeowners insurance please give Rhonda Runge a call she will be happy to answer all your questions. Rhonda Runge Serna Insurance 713 515 8928 http://rhondainsuresme.com