Home Insurance Basics

Back to Basics-Homeowners Insurance

   Have you tried to read your insurance policy and just given up? It can be very confusing! Our goal is to help you understand your insurance policy.

    Every policy (regardless of type) should have a Declarations Page, commonly referred to as the “Dec Page”. This page “declares” who you are, what property you have insured, your coverage choices and how much you are paying for this policy period. You will get a new one for each policy period.

There are 2 basic types of coverage on your Home insurance policy: Coverage that protects you and coverage that protects the other party.

Coverage that protects you:

Coverage A- Dwelling Value:  The dwelling value is set at or above the estimated replacement cost of the home. This includes the cost to haul away debris, the materials and contractor’s overhead & profits. This coverage can be written at Actual Cash Value (the value to rebuild the home minus depreciation based on the age of the home) or at Replacement Cost (value to rebuild the home at today’s quality and price). I suggest Replacement Cost policies. Many people ask us to match the coverage to what they bought the house for. Remember- Insurance is meant to make you whole again after a loss. The Dwelling Value isn't isn't based on how much it would cost to buy your home again. It is based on what your carrier is willing to pay out if you had to build your house from the ground up.

Coverage B- Other Structures: This covers buildings SEPARATE from the house, such as a pool, fence, storage shed, detached garage, etc. This usually defaults at 10% dwelling value. It can be lowered to save money or raised to increase coverage.

Coverage C- Personal Property:  Covers your contents of the home. This can also be written at ACV or Replacement cost coverage. If you have a total loss to the home, the carrier will write you a check for the total personal property, regardless of whether you have RC or ACV coverage. If you have a partial loss such as a small fire or theft, they will only give you the coverage you have paid for; meaning if you have ACV coverage, your 8 year old TV will only be covered for the value of an 8 year old TV. If you have Replacement Cost, your coverage will cover the cost of a new TV.

Loss of Use:  This provides reimbursement for reasonable increases in living expenses (such as a hotel room or apt) due to a covered loss, if your home is uninhabitable. There is usually a set amount as well as a set time period. Once the home is inhabitable again, you are expected to move back in (Regardless of how much you are enjoying the hotel!)

Deductibles:  This is the amount you pay out of pocket when you file a claim for a covered loss. There are 2 main types of deductibles;

            Wind/Hail Deductible: This covers your home in the case of high winds or hails, usually seen during severe storms. 

            All Other Perils Deductible: This covers your home for the remaining perils listed in your policy, such as fire or theft. Keep in mind, home insurance policies do not cover floods. You will have to buy a separate policy for flood insurance.

Coverage that protects the other party:

Personal Liability: This covers you if someone is injured on your property due to your negligence.  It can help pay for their injuries and any legal costs. We had a neighbors dog bite a visiting child once. The child is fine, but there were some medical costs and their Liability on their Home Insurance policy paid it in full.

Medical Payments: This will provide reasonable and necessary medical expenses to a guest on your property injured in an accident. If the UPS guy trips and falls and needs medical attention, this would cover minor needs, like ER and stitches.

Insurance coverage can be confusing, but it doesn't have to be!


Have other questions? Need a quote?

    * Call us  877-987-8683  

    * Visit brockmanpremierins.com

When should you update your insurance?

Is It Time to Update Your Home Insurance Policy?

I don't know many people who enjoy talking to their insurance agent. There are few out there, but most of the time people want to put a policy in place and not have to deal with the process again. This is great. Low maintenance clients are our favorite kind! But there are conversations we need to have with you. Many people do not realize how changes in their lifestyle or their home can affect their home insurance policy. 

Marital Status

Did you get married? or are you now single? These changes can affect your rates. If you got married, you will want to put your spouse on your policy. If something happens to you and you are incapacitated, if your spouse is not on your policy, they cannot file claims or make decisions about the policy. If you are now single, you will want to remove your (previous) spouse from the policy so they may not make changes or decisions about the policy. Being married will usually lower your rate a little bit. Most carriers consider married couples to be a more stable risk. I know we all know people that would not be true of, but carriers compile several types of statistics to determine risk. 

High End Purchases

You have a certain amount of coverage for your Personal Property on your policy. If you buy a large screen TV or a high end computer system, you may be exhausting that coverage amount. Many carriers offer options to increase the personal property amount.  It is a good idea to keep receipts and take photos of any high end purchase for verification in case you file a claim. Home policies will cap the amount of coverage for jewelry, so if you buy a new piece of jewelry, you may need to change your coverage. You can add a "Schedule Personal Property" endorsement that will cover a specific piece of jewelry. You need to get a certified appraisal, including a photo to verify the value of the jewelry. The carrier can write the additional coverage for the exact amount of the piece. It would not be subject to the policy deductible and will ensure you are fully covered.

Home Improvement

Remodeling/adding onto your home can increase the 
Replacement Cost on your Dwelling value.

The dwelling value is what the carrier determines it would cost to rebuild your home from the ground up in the case of a catastrophic loss. This can includes remodeling the kitchen or bathrooms, adding a pool, changing out plumbing. Not everything will affect your dwelling value, but talk to your agent about any changes you are planning. 

Pet Changes

Have you adopted a dog recently? Some dog breeds are prohibited by carriers (Pit Bulls and German Shepherds for example). Your dog may not be a problem, but statistics show that certain breeds are more aggressive and more likely to bite. Carriers do not want to pay out those claims so they make them ineligible. If you have an ineligible dog breed, your carrier may cancel your policy outright or they may exclude liability coverage for anything that has to do with the dog. If you do not disclose the dog, they may deny a claim because of fraudulent information on the policy.

Home Security Systems

Have you added a monitored alarm system? Turned your home into a "Smart Home"? These can save you money on your policy. Now I believe having a monitored alarm system is a very good idea, but it will not save you the same money you will spend installing and maintaining the system. You add a security system for one reason- security. And no, the system that notifies you on your iphone is not a monitored alarm. It must be monitored by a certified alarm company 
that notifies the police and/or fire department. 



When you are coming up on your insurance renewal it is a good idea to keep these things in 
mind. If you have made any of these changes, be sure to let your agent know so that you will be sufficiently covered. Also let them know any contact information changes. We have had people move, change phone numbers and email addresses and then act completely shocked when we don't know about the changes. Agents do not know you have made these changes unless you tell them! You can email or call into your agent; just let them know!


Have other questions? Need a quote?

    * Call us  877-987-8683  

    * Visit brockmanpremierins.com

Dog Bite Liability

The Dog Days of Insurance

"What do you mean, they won't insure me because of my dog?" 
We hear this one often. "It's my dog. I take care of him/her. 
What business is it of the carrier? "

Why does my insurance carrier care what type of dog I have?

Dog Bites

Dog bites are why your carrier cares and why they get to decide what breeds they will/will not insure. 

These statistics might surprise you:
* Over 17,000 people were bitten by dogs in the US last year.
* The average cost per claim is $39,017.
* There were 39 dog bite fatalities in the US in 2017.
* Dog bites and other dog-related injuries accounted for more than 1/3 of all homeowners insurance liability claim dollars in 2018,  $675 million.   (Insurance information Institute)

Some dog breeds are considers higher risk dogs, such as Pit bulls and Rottweilers. This doesn't mean all Pit Bulls and Rottweilers are aggressive, risky dogs. But statistics show they are more likely to be aggressive than other breeds. Most Home insurance carriers have a list of "Aggressive" breeds they will not insure. Some carriers will not insure the home at all if there is an ineligible dog breed living in the residence. Others will exclude Liability on the dog. So if the dog bites someone, the carrier will not cover any of the claim payout. Most of us don't believe our dog could bite someone. And chances are your dog won't. But these are dogs and they are never fully rational or tame. So you need to plan accordingly and so do the carriers.

Personal Experience

Years ago, our next door neighbor had a Great Dane, Duke. Duke was an awesome dog. He got out one time and I went to pick him up for my neighbor. He walked straight up to me and laid his head on my shoulder. (Yes he was that tall and I am that short!) My point is, he was the sweetest dog. A gentle giant. One day their ten year old son was playing video games with a friend. The friend leaned down in front of Duke and Duke bit him. The child's head fit all the way in Duke's mouth. There were bite marks on his face and on the back of his head. The insurance carrier immediately put $100,000 in claims reserves in case the child needed surgery. The child didn't require surgery and the bites were taken care of with a few stitches and glue. Now the child is fine- no permanent damage, thank God. And we found out a little later than he had been taunting Duke by taking his chew toy away from him. The lesson here is that even the sweetest dog will defend himself (and his toys!). You never know what might set a dog off.  The Doctors said he had to be a very gentle dog who was not trying to hurt the child because a dog that size could have easily killed the child had he intended to hurt him.  It didn't cost our neighbors any money because they had the right coverage. But they had to get rid of Duke which broke all of our hearts. 

The Dog Owner is Responsible

As the home and dog owner, you are responsible. You can also be brought up on civil and criminal charges if your dog attacks someone and you are found to be liable.
If you look at the medical and court costs, the carrier can payout out thousands of dollars for a single claim. Be sure to let your insurance agent know about your dog. You want the dog listed on your policy so if there is ever a claim, you will be covered. Now if you have an "ineligible" dog breed, you may not be able to get liability coverage for your dog. But there are different options you should be able to discuss with your agent.

And that is why your carrier cares what type of dog you have.

Have more questions or want a quote?

* Visit brockmanpremierins.com

* Call us at 877-987-8683