Georgia Homeowners Insurance 101
You’re looking for a Homeowners policy, but it’s your first home and your super confused as what is in front of you. Here is the basics for Homeowners Insurance.
First, congratulations on purchasing your first home! Here at Hometown Insurance Group Jimenez Agency, we like making things super simple for you.
So, let’s break down the basics.
One of the most important coverages on the policy, this is the amount of money that the home is being insured for. This comes into play when you have a claim on the home, if it’s a total loss or if you’ve had some sort of smaller damage.
Our clients that are in West Georgia and throughout Georgia must worry about hail, fire, wind and lots more of potential hazards! This number is calculated based on the size of the home, the age and other details we collect from you.
Look at the picture below to see the layout of the coverages.
Scenario: Home catches fire and it burns down. (worst case scenario) This is what the insurance policy will pay up to when rebuilding.
This number is the amount of money your personal belongings are insured for. Such as your appliances, clothes and furniture.
Some key things you want to look out for here is having REPLACEMENT COST coverage on your personal belongings.
For example, if we have a claim in Douglasville, GA where the home burned down. All the property inside the home will be replaced, if your policy has REPLACEMENT COST ON CONTENTS you will be paid to REPLACE the item instead of receiving a smaller check if you have an ACTUAL CASH VALUE on PERSONAL PROPERTY. So, make sure you clarify that you want to have REPLACEMENT COST
Keep in mind Homeowners Insurance Policies most of time LIMIT the coverage on Guns, Jewelry and collectibles. Make sure to contact your insurance agent for clarification.
Scenario: A thief enters the home and takes your things; this would be the coverage amount. Or if your belongings get destroyed in a fire.
Other Structures:
sheds, fencing or any kind of property that is not attached to the home. So if there is a fire in the home that spreads to a shed or some kind of fence this is where the coverage for it comes from.
Scenario: Hail Damage or your shed catches fire. This will be the coverage that comes into play.
Loss of Use:
This coverage comes into play when you have a claim on the home policy. This amount is used to give your family a place to stay while we are in the home repairing damages of the claim.
Scenario: ya'll had a small kitchen fire and now there is smoke damage to the home. While we're in the home repairing the damages, this money is available to you to book a hotel and buy food.
Liability Coverage:
Amount of money that the insurance company will protect you for in case of a lawsuit.
Scenario: UPS driver is delivering a package and trips on your property and gets hurt. UPS driver sues you this coverage will kick in. Or Your dog gets loose and bites the neighbor’s child, the parents sue this will cover you.
Deductible:
Amount of money coming out of pocket before the insurance company takes over the bill for the claim you are having.
Scenario: Your pipe bursts or you have hail damage on your roof. If the claim is approved, you pay your deductible and the insurance company pays the remaining.