HOMEOWNERS INSURANCE 101

Questions and Answers by Community insurance Group

Community Insurance Group, LLC. is an independent insurance agency that specializes in homeowners insurance as well as other lines of insurance. We believe that before you buy a homeowners policy there are a few things you should know.

  • What are my monthly/annual premiums? This is the cost you pay each month for insurance. It’s good to compare premiums from different companies to make sure you are getting the best rate. Your premium can affect the cost of your mortgage.
  • Can I insure other items for a discount?  You can bundle policies together (i.e. auto, home, life, etc.) to get a discount.
  • What is my deductible under the policy? The deductible is the amount you are required to pay before a claim is paid out. Remember the higher the deductible, the lower the premium.
  • What events are excluded from coverage? Typically in most policies earthquakes and floods are excluded.  If you need such coverage inquire with your agent.
  • Does my policy have limits on the amount it will pay for jewelry/special items? If you have art, expensive clothes/jewelry, your policy may have limits on how much you can recover if those items are damaged/stolen. Check your limits to determine if you need more/additional coverage.
  • What are my limits of liability? This is the amount the insurance company will pay in legal bills if you are sued due to an incident at your home (ex. falls)
  • Am I protected away from home? Most policies will provide you with coverage if items you own are lost/stolen when you are not at home. Your children may even be protected while they are away at college.
  • What policy discounts are available? Most policies will offer a discount for smoke detectors or a security system. Find out what discounts you are eligible for.
  • Does my policy cover market value or replacement value? Market value means you are paid the market price of your house if the home is destroyed. Replacement value means you are paid whatever it costs to replace the house. It may cost more to rebuild your home than the home is currently worth so market value is usually better.
  • Should I reevaluate my insurance periodically? It’s important to shop around periodically to make sure your rate is good. If you are in need of some new insurance feel free to call Community Insurance Group 770.969.0888.