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Moving into a home, whether it’s new or hundreds of years old, is just one of those things that brings up more questions than you ever thought you’d have. One commonly confusing part of purchasing a new home, is the insurance. How does home insurance work? How much should you be paying? What do I do if something breaks? What’s a deductible? The list of questions goes on and on. The best time to find an answer to these questions, is before you actually need the answers, before a problem arises. The second best time, is right now.

What is a deductible?


For home insurance policies, there are usually three different types of deductibles.

-A flat deductible. This is for a fixed dollar amount, for example, $2500.

-A percent deductible. This is a percentage that is based on the home’s dwelling coverage. For example, a home with a $150,000 dwelling coverage with a 1% deductible, would be $1500, whereas a 1% deductible for a home with a $300,000 dwelling coverage, would be $3,000.

-Split deductible. This means that there is a specific deductible that applies to certain causes of loss, and a different deductible for other causes of loss.


How do I know what deductible applies to my policy?


This will be easily listed on the declarations page of your home insurance policy.


Do I have coverage for my personal valuables?


In most cases, you should have limited coverage for your personal items. However, for added coverage, we recommend you purchase a Personal Articles Floater. This provides coverage for your personal items.


What is a home inventory checklist, and why do I need to complete it?


If you ever need to file a claim, having a completed checklist accompanied by pictures, is going to be invaluable. If something is damaged or stolen, you’ll have a much easier time receiving compensation if you have your checklist completed. This checklist is a detailed list of everything in your home, with pictures as well. You’ll want to include a description of the item, serial numbers if they’re available, the purchase date, and estimated value.


What about loss due to natural disasters?


Your home is covered for things such as fire, lightning, tornadoes, wind storms, and other natural disasters. Some limits will apply depending on your specific plan, so make sure you talk to your insurance agent about the things you are most concerned about.