Homeowners Insurance

• Sufficient Coverage Considerations:

  • Verify that your insurance coverage is adequate for current construction costs, excluding land value.
  • Avoid relying on the original purchase price for estimating rebuilding expenses, as costs may vary.
  • Some financial institutions may require homeowners insurance matching your mortgage; ensure coverage aligns with rebuilding costs.
  • Even with a fully paid mortgage, retaining homeowners policy is crucial for safeguarding your home investment.

• Swift Estimation Method:

  • Quickly estimate necessary insurance by multiplying your home’s total square footage by local building costs per square foot.
  • Contact local real estate agents, builders associations, or insurance agents to determine construction costs in your area.

• Factors Influencing Rebuilding Costs:

  • Local construction expenses, structure square footage, and exterior wall construction type (frame, masonry, veneer) are influential.
  • House style (ranch, colonial), the number of rooms and bathrooms, roof type and materials, and additional structures impact costs.
  • Special features like fireplaces, arched windows, custom-built elements, and home improvements contribute to rebuilding expenses.

• Coverage under Standard Homeowners Policies:

  • Typically cover disasters such as fire, lightning, hail, explosions, and theft.
  • Exclusions include floods, earthquakes, and damages from inadequate routine maintenance.

• Liability Protection Overview:

  • Shields against legal actions stemming from bodily injury or property damage caused by you, your family, or pets to third parties.
  • Covers expenses related to legal defense in court and court-ordered damages.

• Minimum Liability Coverage:

  • Most homeowners insurance policies typically provide a minimum of $100,000 in liability insurance.
  • Higher coverage amounts are available and increasingly recommended.

• Recommended Coverage Levels:

  • Advisable for homeowners to consider obtaining at least $300,000 to $500,000 in liability protection.

• Expert Assistance from Gordon Insurance:

  • Let Gordon Insurance guide you in selecting a policy tailored to your specific needs.
  • Objective is to safeguard personal, business, or combined assets.
  • A well-chosen policy can mitigate the impact of common yet unforeseen risks in life.

• How to Reach Us:

  • When exploring homeowners coverage in the DMV, contact us for a quote or further guidance.

• Additional Living Expenses Coverage Importance:

  • Vital component of standard homeowners insurance.
  • Addresses extra costs when forced to live away from home due to insured events like fire or severe storms.
  • Encompasses expenses such as hotel accommodations, restaurant meals, and other living costs during home reconstruction.

• Coverage Variation:

  • Differs among insurance companies.
  • Typically, policies offer around 20% coverage based on your home insurance.
  • Some companies offer policies with unlimited loss of use coverage for a specified duration.

• Consultation and Customization:

  • Essential to communicate with your agent or insurance company.
  • Confirm the extent of your coverage and its duration.
  • Option to enhance coverage with additional premium in many cases.

Coverage Restrictions for High-Value Items:

• Some insurance policies may impose limitations on coverage amounts for valuables like jewelry, silverware, and furs.
• Typically, there’s a cap on jewelry, often ranging from $1,000 to $2,000.

Determining Limits and Restrictions:

• Consult your insurance agent or refer to Section I, Personal Property, Special Limits of Liability, in your policy to understand these restrictions.
• Keep in mind that insurance companies may also set limits on reimbursement for computers.

Exploring Special Coverage Options:

• If coverage limits appear insufficient, consider opting for a special personal property floater or endorsement.
• These options allow you to insure individual items or collections separately.

No Deductibles with Floaters/Endorsements:

• Notably, floaters and endorsements don’t come with a deductible.
• Premiums are determined based on the specific item (or collection), its value, and your location.

Determining Item Value:

• Establish the value of your items by providing your agent with a recent receipt or obtaining a professional appraisal for the item or collection.

For more information on high value items, click here: