Commonly Asked Questions

How Much Home Insurance Do I Need?

• Property Protection: The better your coverage, the less you will have to pay out of your own pocket if disaster strikes.
• Self Protection: You need enough liability coverage to protect yourself from lawsuits resulting from your negligence.
• Lender Requirements: Your lender may require you to cover the house for at least the amount of the mortgage. This may be either too little or too much coverage for your individual circumstances. You are not required to purchase insurance from the insurer recommended by your lender.
• Policy Requirements: insurers may impose some coverage requirements for replacement cost protection

What Affects Home Insurance Prices?

• Type of Construction: Frame houses usually cost more to insure than brick.
• Age of House: New homes may qualify for discounts in some states. Some insurance companies either may not insure very old homes or offer a limited form of coverage.
• Local Fire Protection: Your home's distance from a fire hydrant and the quality of your local fire department determine your fire protection class.
• Amount of Coverage: The amount of coverage you buy for your house, contents and personal liability will affect the price you pay.
• Deductible Amount: Your choice of a higher deductible will reduce the price for home insurance.
• Discounts: In some states, insurers offer lower prices for such things as insuring your home and car with the same company and installing deadbolt locks or alarm systems.

What Deductible Should I Choose?

• The deductible applies only to coverage on your house and personal property. It is the amount you have to pay out of pocket on each claim.
• A policy with $100 deductible will cost more than one with $250 deductible. Higher deductibles may be available at a reduced price.