There’s nothing quite like getting the keys to your new home. It’s the place you build a life and spend time with the people you care about most. Whether you are about to close on your first property or have lived in your current home for more years than you can remember, having the right home insurance is essential to protecting your investment both now and in the future. At Awesome Insurance Consultants, we can take care of your insurance needs from start to finish, working to craft a policy that reduces your vulnerability to risk carefully.
Hazards and Perils
Homeowners insurance policies are designed to offset the risks that are characteristic of homeownership. Depending on which type of policy you choose, your coverage may include protection against only a specific list of loss events (named perils), or it may protect you against a much wider range of losses with the exception of those specifically excluded by your policy. A typical homeowners insurance policy may provide coverage for damages caused by:
- Smoke, Fire, and Explosion
- Wind, Lightning, and Hail
- Fallen objects
- Theft and Vandalism
- And more
Certain damages are almost always excluded from homeowners insurance unless you add endorsements to your policy or purchase separate coverage. For example, you may need to speak with your agent if you wish to purchase coverage that protects you against water discharge, sewer backup, or flooding.
Understanding Your Home Insurance Policy
Home insurance is diverse, offering several different types of coverage in one user-friendly policy. Your coverage details could vary depending on your insurer and the type of policy you choose, but typical coverage includes protection for:
The first sections in your home insurance policy cover damages to your home’s structure and the other structures on your property due to a covered event. This could cover the cost of cleaning up and repairing your property after a damaging event or the full cost of rebuilding your home in the event of a total loss. Structural damages are typically subject to your deductible, which you select when purchasing your policy. Higher deductibles typically yield lower premiums, whereas lower deductibles result in a lower cost burden when you file a claim.
Be sure to review your coverage and talk with your agent to assure your policy covers the replacement value of your property – not just the cash value.
Home insurance may also cover your personal property, which refers to the belongings you have inside your home, as well as those you keep elsewhere, such as a garage or in your car. This typically includes protection for things like your furniture, electronics, apparel, kitchenware, bicycle, grill, patio furniture, and more. These items can cost tens of thousands of dollars to replace after a total loss. With the right personal belongings protection, you could minimize your out-of-pocket costs to little more than your deductible.
Insurers typically insure possessions in one of two ways – actual cash value and replacement value. The actual cash value refers to the depreciated value of your items. This is usually the standard coverage offered by insurers, and it only reimburses you for the market value of your items. If you prefer to instead be able to replace your damaged or stolen items with new belongings, we recommend upgrading your protection to include replacement cost coverage.
In many cases, insurers set default limits on personal property insurance equal to 50 percent of the structural damages coverage limit. However, we recommend taking a home inventory to ensure you are adequately protected. This can also help you determine whether additional scheduled coverage may be necessary for expensive items like jewelry and firearms, which may be subject to coverage limitations in your policy.
Liability insurance plays an important role in protecting your family against litigation. Although it excludes certain types of damages, such as those caused by a car accident, liability insurance can protect you against expensive legal fees, judgments, and penalties when you are sued for a third-party’s injuries or property damages. In most cases, liability insurance extends to all members of the household for accidental damages that occur at home, as well as away from the property. Talk to an agent here at Awesome Insurance Consultants for help choosing your liability limits. In most cases, we recommend high-limit coverage, as you could be held personally responsible for paying any excess damages beyond the limits of your coverage.
Medical payments coverage is not liability protection, but it does provide no-fault benefits for third-party injuries that occur on your property. Although the coverage limits are typically low, they are often enough to pay for small to moderate-sized medical bills, which may help you avoid being served with a lawsuit.
Temporary Living Expenses
If you come home to a house that has been destroyed by fire or damaged by a fallen tree after a storm, you may need to find somewhere else to live until your home can be rebuilt or repaired. Displacement is never easy, but it is made more trouble-free with the help of temporary living expense coverage, which pays for your hotel charges or rent, as well as other necessary living expenses you incur as a result of your loss.
Affordable Missouri Home Insurance
If you own a home in Missouri or are in the buying process now, Awesome Insurance Consultants wants to be your all-in-one source for your insurance coverage needs. We can help you build a personalized home insurance policy and compare rates from multiple Missouri insurers until we find a competitive rate on the coverage you need. We can also help you find discounts you may be eligible, such as savings for:
- Installing a monitored home security system
- Purchasing additional lines of coverage (i.e. auto insurance)
- Being claims-free
- And more