Home owners insurance? What are the must haves?

rodm1 · Dec 25, 2010

The post bellow has created a question about home owners insurance. What is a must have in a policy to have full coverage (wording to look for)? What are some of the electives that get over looked that you should have?

The reason I ask is my mom's house is payed for and here insurance doubled last year and we would like to start to look around. But I've been reluctant because I don't won't her to be short on coverage.

Gun guru · Dec 25, 2010

The Insurance doubled?

You need to price around. I did and my insurance went from $1100 per year to $730, I switched from Frankenmuth mutual to Farm Bureau. The coverage is almost the same.
Things to check for:

1. What is the replacement cost of the house, IE if it burns to the ground, some insurance companies have this rated too high. Mine was. I made the statement to Frankenmuth that the whole house including the land would be $250k (the house alone was insured for $250 and the land wouldnt burn down with the house, etc.

2. Contents of the house, is the furniture and appliances worth $30k, not my stuff.

3. I am automatically receiving $5,000 in firearms replacement coverage, a good amount.

I think of insurance companies as car salesmen. You can buy a car without all the fancy options, just like home owners insurance, you dont need all the expensive riders either.

Stuff that might get overlooked would be wedding rings, vandalism coverage, septic system backup.

Read the whole policy before you sign up for new coverage.

JDemaris · Dec 25, 2010

Insurance here for certain types of property in central NY has doubled in the past 5 years. Even more if you have a homestead with farm animals, old equipment laying around, etc.

Close to the same has happened with properties I've got in northern Michigan.

I suspect for some people, home insurance isn't worth having - other then liability coverage. All depends on the specific situation. If you owe no money and can repair much yourself, you might save in the long run with no replacement/repair coverage.

I've got three homes and dropped all the insurance (except liability). I have no mortgages and some types of losses wouldn't have been covered anyway. I know several people who have done the same.

If you want everything covered, you're going to pay for it - one way or the other. I've never had collision insurance on autos or trucks, and am now doing sort-of the same with houses.

MarkWV · Dec 25, 2010

generally 2 types, named peril -cheaper, covers only the things listed for by name ie fire, wind, hail etc and other is broad form, or some call all risk, covers everything except those listed exclusions (most common)generally required if loaned against by a bank. contents generally are 50% of dwelling amount unless you have replacment cost on contents, storage buildings, detached garages etc are 10% of dwelling amount. Lots of different companies, shop,compare and know that amount of deductible affects premiums, the larger deductible, cheaper the rate, HTH

RayP(MI) · Dec 25, 2010

Suggest that you find an agent that has several companies to write for. They can probably do an on screen comparison if the various companies, and advise you as to what to watch out for.

barn E · Dec 25, 2010

Minimum would be fire policy. Not sure if anybody will sell it to you anymore. They want big bucks. Thing to remember sure land doesn't burn but clean up costs are easy 10 or 20 grand. Dave

Home owners insurance? What are the must haves?

rodm1

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Gun guru

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JDemaris

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MarkWV

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RayP(MI)

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barn E

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