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Homeowners Insurance – Not All Policies Are Created Equal

By January 25, 2017Personal Insurance

As an independent firm, we are tasked with representing clients, bringing the best insurance solutions we can find to our clients.  In order to make that possible, we’ve partnered with dozens of insurance carriers that offer all sorts of different coverages, each unique to different types of buyers.  While auto coverage is something that is advertised for more, there are a myriad of options on a homeowners policy worth noting.  Let’s dig a little deeper on some of the more popular options:

  • Service Line Coverage.  Every now and again a client will call us to find out if their water line to the house or sewer line leading away from the house is “covered” under their homeowners policy. Most ISO homeowners policies are not built to cover this.  However, we do have a carrier that will include this coverage automatically in their homeowners policy.  This is a great way to get added coverage, often times for little to no extra premium.
  • Combined Single Limit.  Most standard ISO Homeowners policies list different coverages for different facets of the home.  Coverage A is for the dwelling/structure, Coverage B is for Other Structures (think shed or pool house), Coverage C is for Personal Property (that awesome TV you just bought to watch the Super Bowl).  We have a carrier that instead rolls those coverages into one combined limit, calculated in 200% of the dwelling limit.  So, instead of getting $500,000 for the dwelling, $50,000 for other structures, and $350,000 for personal property, the insured would receive$1,000,000 in one large “bucket” to replace what was damaged in the case of a total loss (less a deductible, but we’ll talk about that in the next point).
  • Total loss deductible waiver.  If an insured actually experiences a total loss, it’s a traumatic, emotional experience.  The last thing one wants to hear is “You’ll be getting X amount of insurance LESS THE DEDUCTIBLE.”  In times like that, they want to know that they’ll be taken care of, not that they owe.  We have several carriers that offer endorsements that waive the deductible in the case of a total loss.
  • Cash out/buy out optionAlso in the case of a total loss, sometimes the insured won’t want to rebuild.  Maybe they just want to move and buy that place in Florida they always wanted.  The cash out/buy out option gives them the full limit in cash, and in return they sign the deed to what’s left over to the insurance company.  It’s a great way to simply walk away from the situation.

There are literally hundreds of other options that can be included on a standard homeowners forms.  Most of our carriers can offer something tailored to your unique situation.  Think about getting a quote today.