Home Insurance IQ

How well do you know home insurance, and the importance of being covered? Here are five quick questions and answers that will give you an idea of how crucial your home insurance policy can be.

How much would it cost to rebuild your home in today’s market?

The costs associated with rebuilding a home are astronomical. There is no doubt that your home is going to be the most significant investment you ever make, which is why insuring it is so important. Adding up construction costs, exterior wall construction, and interior construction costs will give you an idea of the figures involved. That is why home insurance California is so important for all home owners.

What is personal liability umbrella coverage?

Many feel that getting liability insurance is unnecessary, without really knowing too much about it. Liability insurance is essential in protecting you from being sued for accidentally injuring someone or damaging their property.

Do I need separate coverage for jewelry and other valuables?

There is coverage in most insurance plans for stolen/destroyed valuables such as jewelry, furs, chinaware, and expensive watches. However, there are likely to be limits on how much coverage you get in the standard plans. It is unlikely that you will get more than $1000 or $2000 worth of coverage for each stolen item. If you have extremely valuable jewelry in your home, you may want to get it insured separately. Often times you can get add ons to your home insurance plan for these purposes.

What is the difference between replacement cost coverage and actual cash value coverage?

Replacement cost coverage is more typically offered to homeowners. This coverage will give you enough insurance money to completely repair anything in your home that was damaged or lost in covered peril situations.

Meanwhile, actual cash value is a type of coverage that pay you the actual cash value of your home before any loss occurred. In the case of actual cash value, depreciation would be deducted before you were awarded money.

For example, if you have a television that you bought for $1000 but is now worth $300, with replacement cost coverage they would replace your TV with a new one worth $1000, but in actual cash value you would only get $200.

What is the difference between home insurance California and home warranty California?

Home insurance is designed to protect you and your home from any unexpected damage. For example, if a hail storm goes through your town and damages your roof, your insurance policy will cover the cost of repairing the damages.
A home warranty offers repairs and/or replacements for home appliances that are damaged by normal wear and tear.

Disclaimer: This is for information purposes only and NOT a recommendation from Mills Insurance. Please contact a licensed insurance agent specialist to discuss insurance coverage’s and laws.

Mills Insurance Services, Inc. A nationwide insurance company is at your service for the following insurance needs:
• Home insurance
• Auto insurance

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