Homeowners insurance

The cost of your homeowners coverage is largely determined by five factors:

Location
Risks like extreme weather, crime rate, and distance to a fire station all can impact your rate. For example, you might pay more for waterfront property or if you're located in an area prone to mud slides. Construction costs also vary by region, which is another factor that determines your homeowners rate.

Estimated replacement cost
This is different from the current tax assessment or market value of your home. This cost accounts for the actual cost to rebuild the structure of your home. For example, if your home is destroyed in a storm, how much would it cost to rebuild it? The actual cost is the replacement value. This amount includes materials, labor, inflation, and availability of building materials.

Age and conditionThis is determined based on specific things like

• Building materials
• Age of the roof
• Renovation of home systems

For older homes, we also factor in whether the building materials are still available and their current market price.

Safety devices
Examples of safety devices can include

• Dead bolt locks
• Burglar alarms
• Smoke detectors

These and other home safety features can help you stay safe and lower the cost of your home insurance policy.

Your deductible
In short, the lower your deductible (what you pay out-of-pocket before coverage kicks in), the higher your premium (what you pay for insurance).

It's not always easy to know the difference between certain terms when it comes to insurance. Let's clear up exactly what the most important ones mean.

Deductible
What you'll pay before your coverage kicks in. In most cases, this amount is just deducted from your payout after a claim. For example, if your deductible is $500 and you have a $2,000 claim, you will receive $1,500.

Premium
The total amount that you pay for an insurance policy.

Dwelling
Another term used to describe the part of your home insurance policy that covers the structure where you live (not a shed or other structure on your property).

Scheduled Items
These are pricier belongings (jewelry, art, etc.) that may require more coverage, since a standard home policy limits the amount you can claim per item.

Liability Coverage
If someone else is injured or has their belongings damaged on your property, this covers claims against you, as well as reasonable and necessary medical expenses.

You're excited about your new home, but you might be equally as nervous about a home inspection. Here are some answers to frequently asked questions to help you understand what to expect.

Why is an inspection required for my home?
An inspection may be required to confirm that the condition of your property and exposure to any hazards meet standards for an insurable home.

Where will the inspectors look?
Exterior: The outside of your home, yard, and roof.

Roof: The inspector will walk along the roof to assess its condition.

What happens with the information they collect?
The information is used to assess the condition of your home and, if necessary, make changes to your policy. Your information is kept strictly confidential.

What happens after?
Your policy may be adjusted depending on the results of the inspection to ensure that your home is adequately protected. In certain states, roof coverage may be adjusted based on the condition of the roof.

How will I be notified about the inspection?
You will receive a postcard in the mail, as well as a call from the inspector to confirm the details of the inspection.

Will the home inspector take precautions during the Covid-19 pandemic?
Absolutely. Please know that we have put a number of safety practices in place to keep you and our inspectors safe during the pandemic.

Do I need to be present for the inspection?
No. If you are home, please stay indoors to prevent contact while the inspection is taking place.

Will the inspector be wearing PPE and socially distancing when inspecting my property?
Yes. The inspector will be wearing a mask and gloves as part of our safety protocol. The inspector will also request that you stay indoors during the inspection to prevent contact.

Mold generally begins with water getting someplace it shouldn't, so while your home insurance won't provide mold-specific coverage, it will provide coverage for the primary causes, such as water damage. Put another way, insurance will cover mold remediation if it occurs as a result of covered water damage. Water back up and overflow from sewers, drains, and sump pump wells are all covered by Escape of Water, also known as “water back up coverage”.

Learn more about how to prevent water back up and stop mold before it starts.

Home hazard insurance isn't part of a standard homeowners insurance policy. This additional coverage needs to be added to a standard policy. Some states, also require specific types of hazard insurance, like hurricane coverage.