Coverages Every Homeowner Needs
When it comes to homeowners insurance, not all policies are created equal. And that’s important to remember when it comes to protecting what could very well be your biggest asset.
Check out the list below to see what you need in homeowners insurance.
1. The right limit: You need enough insurance to let you rebuild if you have a total loss. So don’t risk it by choosing a lower limit in an effort to save a few dollars.
One thing to remember when it comes to the right limit is the increased value your home may have after a home improvement project. Always report any home improvement project ASAP to your insurer so they can adjust the limit if necessary.
2. Guaranteed replacement cost: When you have guaranteed replacement cost, you can rest easy knowing that you could rebuild your home after a major loss without worrying about depreciation, policy limits or insurance construction costs once you’ve repaired or replaced the damaged property. This is definitely a better option than actual cash value, which takes depreciation into account when calculating the amount of your reimbursement.
3. Enough liability coverage: Your homeowners liability coverage protects your assets in the event someone gets hurt on your property. It also offers coverage for some incidents that happen away from your home (for instance, if you run your bike into someone).
Lawsuits aren’t as uncommon as you might think, and they have the potential to wipe out many people’s net worth. That’s why most people will want to have at least $300,000 of liability coverage. You might also consider a Personal Catastrophe Liability policy, which adds an extra $1 to $5 million of coverage to your homeowners as well as your auto insurance.
4. Loss of use: If your home was a total loss or became uninhabitable after a covered loss, do you know where you would stay and how you would pay for the extra expense? Loss of use coverage offers you reimbursement for costs to stay at a hotel or rent an apartment in the event of a covered loss.
5. Endorsements that let you customize your coverage: Everyone’s risk factors are different. That’s why you’ll want the option of adding earthquake coverage along with inland marine coverage for high-value items you may own. Another important coverage that many homeowners need is flood coverage, which is offered as a separate policy by most carriers.
Two other endorsements that many homeowners find beneficial are Identity Recovery coverage and Sewer & Drain Backup coverage.
6.A reliable deductible: Many homeowners recovering from a disaster such as a hurricane get sticker shock when they learn their deductible isn’t a dollar amount that they chose, but rather a percentage of the limit on their policy. These named-storm percentage deductibles are almost always higher than dollar-amount deductibles—and sometimes significantly so.
Unlike many carriers, ERIE’s named-storm deductible is a specific dollar amount rather than a percentage of your homeowners limit. What’s more, you also have the option of choosing different dollar-amount deductibles for different causes of loss.
7. The backing of a financially sound company: If you have a claim, you want the backing of a company that can afford to pay it. One way to find out if your company is financially sound is to check the rankings from Ward and A.M. Best that are released each year. In addition to earning an A+ rating from A.M. Best and ranking among Ward’s Top 50 performing property/casualty insurers, ERIE also earned kudos for being among America’s 50 most trustworthy financial institutions.
8. A knowledgeable local insurance agent: It’s no secret insurance that can be complicated. To simplify things and get trusted advice, it’s a good idea to work with an insurance agent you trust. An Erie Insurance Agent is an insurance expert in your community you can count on to help you get the right coverage at the right price.
I have really enjoyed having Rob as an insurance man. His friendly and helpful attitude is always appreciated. When we moved into our new home and had a glitch, Rob went above and beyond to insure that we could move on time. I’ve never forgotten his “can do” for our family.
The gals in the office are VERY pleasant and helpful. Ideas for changes are addressed in a good way-never “pushy”. Rates are very good! Home & Auto claims have been handled wonderfully!
The personal relationship to go above and beyond, to put a smile on a client’s face when they know that they have had a bad day just by the sound of their voice. Then to send a card to show they care. You have wonderful agents working in the Dover PA area.
Covenant Insurance has been a great help to my business and family. We trust them to show us what we need and how to save money on our coverage.
A real person answers the phone. That is so refreshing today. The one claim we had was handled simply and quickly. No fuss. No worries.
I have been here for a long long time. I’m very pleased with my insurance company (Erie/Covenant). I will never have to get anyone else.
Our agent Michelle is incredible! We are so happy we made the switch to Covenant! Our emails are answered in an extremely prompt fashion, and if for some reason she doesn’t know the answer she is very quick at finding out an answer for us. All other staff members that we have encountered have also been very friendly! We highly recommend Covenant to our family and friends!
Covenant Ins. is a Co. I highly recommend to meet all your Ins. need. Wonderful freindly trained staff always ready to help meet your Personal or Bussiness needs. Thank you all.
You helped us save on our car and truck insurance, and we added our home insurance with you. We will have to pay one once a year. We have saved nine-hundred dollars. Thank you!
Taxes and Insurances are a necessary evil of life, but with Covenant Insurance handling both my business and personal insurance needs, I sleep without worry. Now, how my tax dollars are handled is another discussion.