{"id":2634,"date":"2011-11-16T22:16:25","date_gmt":"2011-11-17T04:16:25","guid":{"rendered":"http:\/\/www.tillmanallen.com\/insurance-brentwood-tn\/ulead\/?page_id=2634"},"modified":"2011-11-16T22:16:25","modified_gmt":"2011-11-17T04:16:25","slug":"home-insurance-tips","status":"publish","type":"page","link":"https:\/\/www.tillmanallen.com\/insurance-brentwood-tn\/insurance\/knowledge-center\/home-insurance-tips\/","title":{"rendered":"Home Insurance Tips"},"content":{"rendered":"\n
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<\/span>Tillman\/Allen Insurance<\/div>\n

Understanding the Basics of Homeowners Insurance<\/h2>\n
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Statements on this website provide general information only as it relates to policies and coverages. All coverages are subject to the terms, conditions and exclusions of the actual policy issued so contact one of our licensed agents for questions regarding your specific needs and policy.<\/p>\n<\/p><\/div>\n

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What is homeowners insurance?<\/h4>\n

Homeowners insurance is a policy covering your home (the structure) and its contents (personal belongings). It can save you from severe financial loss if your home is damaged or destroyed. It covers your family’s possessions and can provide compensation for liability claims, medical expenses, and other amounts that result from property damage and personal injury suffered by others. Most lenders require homeowners insurance in order to obtain a mortgage.<\/p>\n<\/p><\/div>\n

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Who is covered?<\/h4>\n

Homeowners insurance protects more than just the owner of the house. Depending on your living situation, the following individuals are covered:<\/p>\n

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  • Named Insured<\/strong> \u2014 The individual primarily insured under the policy, who receives the most extensive coverage.<\/li>\n
  • Spouse<\/strong> \u2014 If your spouse resides in your dwelling, he or she is covered by personal property and liability insurance.<\/li>\n
  • Residents<\/strong> \u2014 Relatives who reside in your dwelling, or those under 21 in the care of a family member.<\/li>\n
  • Employees<\/strong> \u2014 Housekeepers, au pairs, or gardeners are covered by personal property insurance.<\/li>\n
  • Guests<\/strong> \u2014 Invited visitors can typically be covered by personal property insurance with prior arrangement.<\/li>\n<\/ul><\/div>\n
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    What is covered?<\/h4>\n

    In most cases, your insurance company will reimburse you for damage or theft affecting:<\/p>\n

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    • Your dwelling, structures attached to it, and building materials stored on the property<\/li>\n
    • Structures not attached to the dwelling (tool shed, detached garage, etc.)<\/li>\n
    • Personal property including furniture, clothing, stereo equipment, and outdoor items<\/li>\n<\/ul><\/div>\n
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      Open Perils vs Named Perils<\/h4>\n<\/p><\/div>\n<\/p><\/div>\n
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      A named perils<\/strong> policy specifies which perils are covered as well as which are not. An open perils<\/strong> policy covers you broadly against risk of direct loss \u2014 but includes an extensive list of specifically excluded perils. HO-3 (the most common policy type) insures the dwelling on an open perils basis and personal property on a named perils basis.<\/p>\n<\/p><\/div>\n

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      What is not covered?<\/p>\n

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      • Land<\/strong> \u2014 The land itself is not covered, even if structures on it are.<\/li>\n
      • Flooding<\/strong> \u2014 Your homeowners policy will not cover damage from floods, waves, or water seeping into your basement. Separate flood insurance is required.<\/li>\n
      • Business<\/strong> \u2014 Business activities conducted in the home are generally excluded.<\/li>\n
      • Registered motor vehicles<\/strong> \u2014 Cars and motorcycles require separate auto insurance.<\/li>\n
      • Earthquake damage<\/strong> \u2014 A separate endorsement or policy is needed.<\/li>\n<\/ul><\/div>\n
        <\/span>Tillman\/Allen Insurance<\/div>\n

        Homeowners Insurance Coverages<\/h2>\n
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        Standard Coverage Components<\/h4>\n<\/p><\/div>\n<\/p><\/div>\n
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        Coverages Available<\/div>\n

        What a policy can include<\/h3>\n<\/p><\/div>\n
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        <\/circle><\/path><\/svg>Coverage A \u2014 Dwelling<\/div>\n
        <\/circle><\/path><\/svg>Coverage B \u2014 Other Structures<\/div>\n
        <\/circle><\/path><\/svg>Coverage C \u2014 Personal Property<\/div>\n
        <\/circle><\/path><\/svg>Coverage D \u2014 Loss of Use<\/div>\n
        <\/circle><\/path><\/svg>Coverage E \u2014 Personal Liability<\/div>\n
        <\/circle><\/path><\/svg>Coverage F \u2014 Medical Payments<\/div>\n
        <\/circle><\/path><\/svg>Replacement Cost Protection<\/div>\n
        <\/circle><\/path><\/svg>Scheduled Personal Property<\/div>\n<\/p><\/div>\n
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        How Much Coverage is Needed?<\/h4>\n

        Your home can be insured for replacement cost (pays the cost of replacing damaged property with no depreciation deduction, up to a maximum dollar amount), guaranteed replacement cost (pays the full cost with no dollar limit \u2014 not available in all states), or actual cash value (replacement value minus depreciation).<\/p>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n

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        It is important that your policy cover 100% of the replacement cost of your home. If your policy limit is less than 80% of the replacement cost, any loss payment may be subject to a coinsurance penalty. An inflation guard endorsement ensures your coverage amount increases each year to keep up with inflation.<\/p>\n<\/p><\/div>\n

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        Special Limits of Liability<\/h4>\n

        Homeowners policies set specific dollar limits for particular categories of personal property. Standard limits typically include:<\/p>\n

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        • $200 for money, bank notes, coins, and metals<\/li>\n
        • $1,000 for securities, deeds, manuscripts, passports, and tickets<\/li>\n
        • $1,000 for theft of jewelry, furs, watches, and precious stones<\/li>\n
        • $2,000 for theft of firearms<\/li>\n
        • $2,500 for theft of silverware, goldware, and pewterware<\/li>\n<\/ul>\n

          You may increase these specific limits by purchasing a Scheduled Personal Property endorsement or floater.<\/p>\n<\/p><\/div>\n

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          Renters Insurance<\/h4>\n

          Many renters mistakenly believe they are covered under their landlord’s homeowners insurance. Your landlord’s policy covers the building \u2014 not your personal belongings. Renters insurance covers personal property, liability claims, and additional living expenses at a very reasonable price.<\/p>\n<\/p><\/div>\n<\/p><\/div>\n

          <\/span>Tillman\/Allen Insurance<\/div>\n

          Homeowners Claims & Cost Management<\/h2>\n
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          How Much Should Homeowners Insurance Cost?<\/h4>\n

          The cost of homeowners insurance is influenced by a broad range of factors \u2014 from rising construction costs to the increasing number of liability lawsuits. It’s also affected by the customer’s needs, policy choices, and habits. We are dedicated to helping our clients control their insurance costs.<\/p>\n<\/p><\/div>\n

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          Ways to Lower Your Premium<\/h4>\n<\/p><\/div>\n<\/p><\/div>\n
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          • Raise your deductible<\/strong> \u2014 Increasing from $250 to $500 can reduce premiums by up to 10%; increasing to $1,000 can lower premiums by nearly a third.<\/li>\n
          • Install safety systems<\/strong> \u2014 Fire extinguishers, sprinkler systems, and burglar alarms can qualify you for special discounts and credits.<\/li>\n
          • Bundle policies<\/strong> \u2014 Placing both home and auto policies with us often yields meaningful multi-policy discounts.<\/li>\n
          • Maintain your property<\/strong> \u2014 A well-maintained home represents lower risk to insurers.<\/li>\n<\/ul><\/div>\n
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            Do I Have Enough Home Insurance?<\/h4>\n

            Keep in mind the difference between market value and replacement value \u2014 in many cases, it costs more to reconstruct a house than it would bring on the open market. Insuring “to value” is essential to avoid being underinsured in the event of a total loss.<\/p>\n<\/p><\/div>\n<\/p><\/div>\n

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            To determine how much property insurance coverage you need, make an inventory of all your home’s contents \u2014 including furniture, appliances, jewelry, and artwork. List serial numbers, purchase dates, and costs where possible. Keep a copy of your inventory in a safe location away from your home, such as a safety deposit box.<\/p>\n<\/p><\/div>\n<\/div>\n