Homeowners Policies

Charles Goodman Group: Trusted Armonk Insurance Broker

Home insurance policies are lengthy documents that are written in complicated legalese. Homeowners need to know and understand what their insurance policy says in order to avoid unnecessary losses. Speaking to an Armonk insurance agent is a great way to sort through all of the legal talk and get a clear understanding of what a homeowners policy means.

At times, homeowners do not ask questions about their policy because they are embarrassed to admit they don’t understand what it says. Because of this, many wait until they need to file a claim or until they have had a claim denied before they attempt to understand their policy. This is often too late.

A good home insurance policy should provide complete coverage in case of a total loss. The policy should allow the homeowners to rebuild the exact same house they lost in the exact same spot it was in without having to pay anything out of their own pocket.

Homeowners make the mistake of basing their policy on how much it cost them to build their home some years ago. Their focus should be on having enough insurance to replace their home, right down to the goofy wallpaper they have in the basement.

When purchasing homeowners insurance, it is also prudent to consider trends in home values. If homes in the neighborhood are skyrocketing in value, the replacement policy should provide sufficient resources to rebuild based on future home values in the neighborhood. Every time a home is renovated, it would be a good idea to revisit the replacement policy for the home and make adjustments that reflect the value of the remodel work that was done.

An insurance agent from the Charles Goodman Group of Armonk would be happy to answer any question you have about health insurance or life insurance.

The same principle applies to determining the right amount of insurance for replacing possessions in the home. The policy should provide sufficient funds to replace articles that were damaged or destroyed. In most cases, just getting the actual cash value of a piece of property is not enough to replace it since items lose value as a result of wear and tear and depreciation. If there are high-value items in the home, an umbrella policy should be considered.

Just like with automobile insurance, a higher deductible will lower insurance premium costs. When determining how much to set the deductible at, a homeowner should ask themselves if a disaster completely destroyed their home, what is the most money they would be able to afford to pay out of pocket at one time. This is how much the deductible should be.

Liability insurance is an important part of any homeowners policy. If a contractor hurt themselves while working on the roof of the home, liability insurance would cover any injuries they sustained and protect the homeowner from financial liability. This would also include coverage for individuals who attended a party in the home, became inebriated, chose to drive home and then caused an accident.

Homeowners insurance policies are complicated because they are designed to cover any and every eventuality. Understanding a homeowners insurance policy is key to getting the right coverage for a home.