Home insurance is one key part of a smart financial plan.  If you’re like most Americans, your house is your biggest financial asset.  Protect it with the proper amount and type of homeowners insurance.

Also, if you have bought your home and financed the purchase with a mortgage, your lender will require you to get homeowners insurance coverage. That’s because lenders need to protect their investment in your home in case your house burns down or is badly damaged by a storm, tornado or other disaster.

Home insurance, also referred to as property insurance, is a necessity to home ownership.  A standard homeowners insurance policy includes four essential types of coverage. They include:

1. Coverage for the structure of your home
2. Coverage for your personal belongings
3. Liability protection
4. Additional living expenses in the event you are temporarily unable to live in your home because of a fire or other insured disaster

Most standard homeowners insurance policies will provide coverage for damage to your home (and many of the items in your home) caused by:

• Fire and lightening
• Theft
• Smoke damage
• Frozen pipes
• Ice and snow

If you live in or are purchasing in an area that is likely to flood or is prone to earthquakes, the bank will also require you to purchase flood or earthquake insurance. If you buy a co-op or condominium, your association board will probably require you to buy condo-owners insurance protecting the areas that the association blanket policy does not.

Homeowners insurance also provides coverage for other causes of loss such as:

• Liability claims
• Medical payments to third parties
• Legal costs if a lawsuit is brought against you
  

Mortgage lenders require that Borrowers purchase a minimum amount of homeowners insurance; the amount of which is typically equal to the appraised value or the purchase price of the home.  However, this recommendation may not represent the amount of insurance you truly need.We suggest having your home insured for at least 100% of its estimated replacement cost.

We recommend that you purchase an amount of coverage at least equal to the estimated replacement cost.  But the choice is yours. Determining your home’s estimated replacement cost is important because this will ultimately determine which policy options are available to you. 

You will need to make some decisions about not only what type of insurance best suits your needs, but the amount of coverage.  You may need additional riders or amendments that would cover specific high-priced or hard-to-replace items that you own. 

Remember to mention to our DoctorsFSG Insurance Representative if you have a home security system (fire, theft, emergency).  Most insurers offer discounts for such safety features.  Do you or will you be living near a fire department or fire hydrant?  Is your home a newer built structure, was it built with fire-resistant materials? 

When contacting the DoctorsFSG Property and Casualty Insurance Representative, make sure to give him or her as much information about your property as possible.  Also inform them of any special or additional needs you may have. 

Protect your home, your family and your investment property……Peace of mind will follow.