A home is a sanctuary, a place where family gathers, where children grow, and where life happens. Buying a home is one of the most significant purchases you can make and it is imperative that your investment is protected. Whether it is your first house or your fifteenth, insurance may be required if your home is financed but essential for all home owners regardless of financial backing. Choosing the right insurance can be a daunting task, so let us help. Here is a basic breakdown of the types of home insurance that are both required and highly recommended for home owners:
Most preferred insurance companies will require at least 4 coverages be in place:
Coverage A – Dwelling- The home itself and attached structures. Also may cover materials and supplies during construction.
Coverage B – Separate Structures- Structures on premises other than the dwelling and not directly attached.
Coverage C – Personal Property/ Contents- Protects personal property within the dwelling. In addition, many home policies cover personal liability and guest medical coverage up to a specified amount. The amount that is required differs by insurance company, lender, and state.
Coverage D – Loss of Use – Additional living expenses paid when covered loss makes dwelling uninhabitable
After the general requirements are addressed, most agencies will begin to tailor the policy to meet the needs of a client. Assets and contents within the home can also be covered on an ACV, RCV, or stated value.
- Actual Cost Value (ACV)- What something is worth minus any depreciation.
- Replacement Cost Value (RCV) – The cost incurred to replace something with an equal value.
- Stated Value – Value that is limited and predetermined within the policy.
Lastly, within each policy there are recommended (optional) coverages that can include:
- Endorsements/Schedules for jewelry, firearms, silverware, securities
- Sewer and Drain Damage
- Increases to Replacement Cost Values (higher percentages)
- Earthquake and Flood
- Mold Coverage
- Building Ordinance
- Many other additional coverages may be available as well
This brief list is not full representation of what is offered within any one home policy or what is available in all home policies. This list is not intended to state an individual’s specific insurance needs or requirements. An insurance professional can help you find which policy is right for you. To get more information or to better understand the insurance options you have available to you, contact Portland Home Team’s trusted insurance professional.
7955 SW Mohawk St
Tualatin, OR 97062-9193