Posted on: November 20th, 2015 by The Accel Group | No Comments

Why do I need homeowners insurance?

Homeowners insurance is often required by mortgage lenders, and protects homeowners from huge financial loss. Homeowners insurance provides financial protection from incidents that occur to your home including theft, vandalism, and fire. Homeowners insurance covers the home as well as adjacent structures including sheds and garages.


What determines the price of my homeowners insurance?

A variety of factors determine the price of your homeowner’s insurance premium. The size of your home, additional features and the value of your home,


Property insurance price is made up of many factors including protective devices such as smoke or burglar alarms, proximity to a fire station, and geographic location of your home.


What is the difference between market value and replacement cost?

The market value of a home is the price the home could sell in a reasonable amount of time in current condition. Replacement value is slightly different in that it is the amount needed to repair damage or rebuild the home. Replacement cost does NOT include purchase price or value of the land.


What does a homeowner’s insurance policy cover?

Basic homeowners insurance typically covers damages to the home by fire, hail, windstorms, lightning, and vandalism. As well as structures of the home, personal belongings within the home, liability protection, and living expenses in the case of displacement from home


Can I purchase additional coverage for antiques and collectibles?

Yes, insurance companies provide additional coverage above and beyond a typical insurance policy to protect more valuable possessions.


Am I required to have renters insurance as a renter?

Renters insurance is not required by law, however many property owners require their tenants to carry renters insurance in the lease agreement.


Are all of my items and property covered with homeowner insurance?

A standard home insurance policy provides coverage to the following:

  • Structures of the home
  • Personal belongings within the home
  • Liability protection
  • Living expenses in the case of displacement from home


In the protection of the structure of your home, insurance may pay to repair your home if damaged by fire, hail, and other factors stated in your policy. It is important to ensure your policy is large enough to cover the replacement cost of your home. Additional structures that can be included are garages and sheds detached from the home. Be sure to talk with a The Accel Group Agent to ensure you are fully covered in the case of a loss.

Personal belongings including electronics, clothes, furniture and other items are covered under most insurance policies. Home inventories are a great way to determine the amount of coverage needed as well as a good resource in the case of a disaster. You can also choose to ensure off-property items to protect items you take with you while traveling or on a daily basis.


Liability insurance as a part of your homeowner’s policy protects you financially if an individual acquires body injury or property damage on your property. Liability insurance also covers the property damage you or your household may make at another individuals home.


Finally, if you are displaced from your home because of fire or other disaster, home insurance will typically pay the cost of living in another location while the home is rebuilt or repaired. This type of coverage has limits, so it is best to talk with a professional insurance agent about the best coverage for you and your family.


Should I purchase flood insurance?


Flood damage is specifically excluded on all standard homeowner’s insurance policies. Because of this, many homeowner’s choose to purchase flood insurance in addition to homeowners insurance. If you live in a flood zone you may be required to purchase flood insurance when buying a home and have higher rates due to risk, however individuals who do not live in a flood zone may also purchase flood insurance if they wish.