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.