Homeowners Insurance

A: Homeowners insurance is a form of personal lines insurance. The typical homeowner’s policy has two main sections:

1. The property of the insured and
2. Provides personal liability coverage to the insured.

A: 

• Get the amount and type of insurance that you need.
• Determine the amount of personal property insurance and personal liability coverage that you need.
• Select any additional endorsements you want to add to your policy. For example, do you want the personal property replacement cost endorsement?

A: When “actual cash value” is used in a policy, a policy owner is entitled to the depreciated value of the damaged property. Actual cash value is equal to the replacement cost of the property less depreciation based upon the age and condition of the property.

A: When “replacement cost” coverage is used in a policy, the policy owner is reimbursed an amount necessary to replace (or repair) the article with one of similar type and quality at current prices. Replacement cost coverage on the contents of your home is an optional coverage under most homeowner policies but is highly recommended. Without it, you receive only ‘actual cash value’ in the event of a covered loss.

A:  Coverage C of a homeowners policy provides named perils coverage. This applies to all your personal property except property that is specifically excluded. Call us to find out more.

Direct damages due to earthquakes are not covered under the standard homeowners insurance policy. If you live in an area that is prone to earthquakes, you may want to consider adding an earthquake endorsement to your homeowners insurance policy. This endorsement will cover damages due to earthquakes, landslides, volcanic eruptions and other earth movements.

A: If your property lies in a special flood hazard area (SFHA) as determined by FEMA flood maps then you may be required by your lender to carry flood insurance. However, 20% of claims and 1/3 of disaster assistance is provided for flood damage to homes that are not located in a FEMA special hazard zone. Ask your Stafford & Co representative about basic flood insurance for as low as $129 a year.