Homeowners Insurance - FAQ
Q: Why am I required to insure my home for so much more than the market value?
A: The amount of insurance is generally required to be the cost to rebuild. Older homes almost always cost more to rebuild than their market value. Failure to insure for 100% of the cost to rebuild could leave a homeowner with inadequate settlement funds in the event of a major or total loss.
Q: Why do I have insurance shown for Other Structures, if I don't have any?
A: This coverage was added as a standard component of all normal homeowners policies many years ago, when utility sheds became popular, and claims for these structures and their contents went unpaid, due to a lack of coverage.
Q: Do I need to buy special insurance for my child at college?
A: Generally, your homeowners policy provides sufficient protection. Personal property is covered as if it were in your home (up to 10% of your coverage amount). There are limitations for theft coverage if the child leaves things in the dorm room or apartment over a long break or summer. Check your policy for the specific number of days that the unit can be unoccupied.
Disclaimer: This information is intended to provide general answers to some commonly asked questions. Your actual coverage is governed by the specific language in your policy. If you have specific questions about your coverage, please contact the agency for a one on one review of your insurance needs.