Episode 9: The Importance of Homeowners Insurance
Interview with Cody Benisch with Benisch & Company Insurance
973-992-3005 | Email Cody Benisch
Why is homeowners insurance important?
- Your home and its contents are usually your most valuable assets
- If you have a mortgage on your property, your lender will require proper insurance coverage
How do you pay for a homeowners policy?
- You can choose to pay out of pocket directly to the insurance company
- Or you can have the monthly cost included in your escrow and the lender will pay the policy
What is homeowners insurance and what does it cover?
- There are six different sections of the policy
- The dwelling
- Other structures – anything detached from the house
- Loss of use – when your home is determined to be un-livable
- Liability coverage
- Personal property
- Medical Payments
What information is needed to start a policy estimate?
- Address of the property
- Material of the roof
- Construction material of the home
- Loss history of the property
- How far is the nearest fire hydrant and fire station?
- Home security features
What is the difference in coverage for condos vs. single family homes?
- When purchasing a single-family home, you purchase the entire structure
- When purchasing a condo, there is typically a HOA involved with the ownership
- What the HOA is responsible for can vary for each HOA so it is encouraged that you request the HOA documents and your agent can review
- Most HOAs are responsible for everything from the drywall out
- Owners are typically responsible for everything from the paint on the walls inward
How is the cost of the policy determined?
- Your credit score
- Location of the home
- Age of home
- Safety and security features
- Bundling of additional insurance policies
Personal property coverage
- May benefit having your agent being local, i.e. Colorado, to understand what the local lifestyle may require for personal belongings
- Look for an agent who asks lots of questions
- Make sure all of your personal items are listed and you schedule very expensive items
How do you let your agent know about big home improvements?
- When doing a remodel or when you purchase new appliances let your agent know to ensure there is enough coverage
How do you assess risks for liability coverage and how are they covered?
- Risks are different for each client so it is a good idea to have a conversation about coverage specifics
- Liability coverage can cover you both on and off of your property
- You may be able to have a policy that extends liability coverage world wide
What is Renters Insurance and what does it cover?
- The cost is very minimal – about $125-$300 per year
- Will cover all of your possessions
- Has similar liability coverage as homeowners insurance
Remember to use your agent/broker as a resource. Check in with them yearly and update them of any changes to your property or even big life changes.