Your Home’s Value—When It Comes to Insurance

We often hear questions such as, “Why would I want to insure my house for $240,000 if it’s only worth $120,000, according to my property taxes?” The reason is that when you buy homeowners insurance you’re not insuring the market value of your home. You’re protecting yourself against financial loss if catastrophe would occur. Would it cost more than $120,000 to rebuild your home from scratch? The answer is usually yes.

That’s why it’s important to insure your home at the level it would cost to replace it—not its market value. Although it might seem like you’d save money if you insured your home for its market value, you could end up worse financially if disaster hits.

It might seem strange to think about. People are inclined to think in terms of value—how much is your car worth? How much did you spend on that coat? But when it comes to insuring your home, the current market value isn’t necessarily the most important aspect. Keeping yourself protected from financial disaster is.

As an Erie Insurance agency, we help figure out what coverage is right for you, depending on certain variables including location and recent improvements you’ve made to your home.

ERIE^® insurance services are provided by one or more of the following insurers: Erie Insurance Exchange, Erie Insurance Company, Erie Insurance Property & Casualty Company, Flagship City Insurance Company and Erie Family Life Insurance Company (home offices: Erie, Pennsylvania) or Erie Insurance Company of New York (home office: Rochester, New York). Not all companies are licensed or operate in all states. Not all products are offered in all states. Go to erieinsurance.com for company licensure and territory information.

Related posts:

• Should you take a higher deductible to save money?
• Homeowners Insurance – How much coverage do you need?
• 3 good ways to make a home inventory

For more information, drop by our website at www.albionagencies.com, or get in touch with me.

The information in this post is general in nature, and geared toward insurance conditions in Western New York.  As always, you should speak with an insurance adviser to determine your specific insurance needs.

Have you done a home inventory?

Have you been thinking about doing a home inventory, but don’t know where to start? Check out this free online inventory software from the Insurance Information Institute.

Related posts:

• Should you take a higher deductible to save money?
• Homeowners Insurance – How much coverage do you need?
• 3 good ways to make a home inventory

For more information, drop by our website at www.albionagencies.com, or get in touch with me.

The information in this post is general in nature, and geared toward insurance conditions in Western New York.  As always, you should speak with an insurance adviser to determine your specific insurance needs.

Earthquakes – are you covered?

If you felt the recent tremors in western New York, you might be wondering if your home insurance provides any coverage for earthquakes.

Probably not.   (but coverage is available)

Standard homeowners insurance policies exclude coverage for earthquakes, landslides, sinkholes, and other land movement.  Most insurance companies offer coverage as an option, usually with a fairly large deductible applying.

The cost is usually quite reasonable in our area. A basic home might have a premium of $40 or $50. The cost goes up for higher valued homes, and brick homes cost more to insure than wood-frame homes.

Most insurance companies have a waiting period after an earthquake where coverage can’t be added (7-14 days typically). This is because there are often additional tremors and aftershocks following an earthquake. But if you are concerned, give your agent a call to get coverage added as soon as it is available again.

Related posts:

• Should you take a higher deductible to save money?
• Homeowners Insurance – How much coverage do you need?
• 3 good ways to make a home inventory

For more information, drop by our website at www.albionagencies.com, or get in touch with me.

The information in this post is general in nature, and geared toward insurance conditions in Western New York.  As always, you should speak with an insurance adviser to determine your specific insurance needs.

Insurance for landlords

Rental properties can be an good source of investment income, but they also expose the owner to potential for significant claims.   Landlords coverages vary widely from company to company; here are some issues to consider when reviewing your coverages:

Building Coverage: Can be written on a replacement cost basis or actual cash value basis. A few companies are now offering market value. Some policies provide automatic coverage for garages and sheds, but you should check if this is a concern.

Contents Coverage: Check to see if appliances are considered contents or part of the building coverage (this varies by company). If you have other contents on the premises, be sure to add this coverage. Pay special attention to lawn tractors and maintenance equipment, particularly if you move them between locations.

Rental Income Protection: If you just carry a fire policy, it probably doesn’t provide any protection for loss of income. Most landlord’s policies do provide this important coverage, either for a specific dollar amount or a specific time period (typically 12 months). This coverage protects you if you have a fire or other covered loss and are unable to rent the property.

Liability Protection: Protects you against lawsuits brought by anyone injured on the premises. It usually includes medical payments coverage as well.

Related links:

• Do you need an umbrella?
• Who pays for an apartment fire?
• Should you take a higher deductible to save money?

For more information, drop by our website at www.albionagencies.com, or get in touch with me.

The information in this post is general in nature, and geared toward insurance conditions in Western New York.  As always, you should speak with an insurance adviser to determine your specific insurance needs.