February 2018

Glendora Homeowners Insurance – Theft, vandalism, fire, smoke, sudden cracking, etc…you never know when problems will strike, but when they do, homeowners insurance can protect you and safeguard your investment.

This is one reason the majority of lenders require homeowners insurance. However, regardless to whether you have a mortgage or not on your property, protection is strongly recommended.

Glendora Homeowners Insurance – What Is & Isn’t Covered

Generally speaking, there are a variety of Glendora homeowners insurance policies, but the two most common types of are HO-2 and HO-3. A breakdown of the policies are stated below:

HO-1 – Basic Homeowners Insurance Policy

Under a HO-1 policy, generally 11 perils are covered. These include the structure of the home, the property within it, and the structures on the land damaged by:

1. Fire or Lightening
2. Smoke
3. Theft
4. Vandalism
5. Damage from vehicles
6. Damage from aircraft
7. Windstorms and hail
8. Riots and civil commotion
9. Volcanic eruptions
10. Explosions
11. Glass Damage

HO-2 – Broad Perils

Under an HO-2 Glendora Homeowners Insurance policy, the above items are covered, plus:

1. Fallings objects
2. Weight of ice, snow or sleet
3. Accidental discharge or overflow of water or stream from within plumbing or related systems (does not include discharge or overflow of water from a sump)
4. Sudden and accidental rupture of a heating, air conditioning, fire protective sprinkler, or hot water heating system
5. Freezing of plumbing or related systems
6. Sudden and accidental damage from artificially generated electrical current

HO-3 – Special Form

Broader than a HO-2 policy, a HO-3 covers all the perils under a HO-2 policy and all risks not excluded by the insurer. Typically, a Glendora homeowners insurance HO-3 policy insures your home and attached structures (i.e. a garage or deck), as well as your belongings and personal liability if you accidentally injure someone or damage their property.

In addition to the above, other homeowners insurance policies include:

HO-4 – Tenant’s Farm

HO-4 coverage is specifically for renters, covering belongings and personal liability as opposed to the building itself (as that’s usually covered by the landlord’s policy).

HO-5 – Comprehensive Form

Coverage, here,  is broader than a HO-3 policy.

HO-6 – Condo Form

HO-6 coverage is generally the same as a typical homeowners insurance, but it specifically is for condo owners and generally protects belongings, personal liability, walls, floors, and the ceiling. The remaining portions of the condo structure is usually covered by a policy covered by the owner’s homeowners association.

HO-7 – Mobile Home Form

A HO-7 Glendora homeowners insurance policy is generally the same as a typical homeowners insurance, but it specifically is for mobile or manufactured homes.

HO-8 – Older Home Form

HO-8 coverage is designed to address specific concerns that arise with older homes, usually seen with older and historic homes.

That said, there are problems that are typically not covered under traditional homeowners insurance. These include:

• Flooding
• Earthquakes
• Landslides
• Mold
• Infestations
• Wear and tear
• Nuclear hazard
• Government action

However, you can purchase separate policies to cover the above and provide added benefit.

Taking these factors into consideration, a natural question one may ask, is…how much coverage does one need? To answer this, allow me to explain the basic parts of a Glendora homeowners insurance policy. Standard coverage includes:

• Dwelling Protection: Covers damage to the home and attached structures.
• Stand-Alone Structure Protection: These cover such structures as a fence, carport, or toolshed.
• Loss of Use: This provides additional living expense coverage, such as helping pay for temporary relocation and basic living expenses if you are forced to vacate your home.
• Personal Property Coverage: This covers one’s belongings (i.e. furniture and dishes), helping pay to repair or replace stolen or damaged belongings.
• Liability Coverage: This coverage protects you financially if you are responsible for another’s injuries arising on your property.
• Medical Payments Coverage: This covers injury treatment costs for those injured on the property.

When it comes to home coverage, many fall under the misconception that they must purchase coverage equivalent to the purchase price or market value of their home. However, that’s not the case. Instead, you should obtain coverage equivalent to your home’s rebuilding cost. This is based on what it would cost local construction to rebuild your home/property if damaged. A Glendora homeowners insurance agent, such as OAK Insurance Solutions, can give provide you with an accurate quote on your home’s replacement cost. However, you can estimate the cost by multiplying your property’s square footage with local construction costs per square foot. The problem for many is that they simply obtain coverage equivalent to their home’s real estate market value. But, this risks under coverage and not having enough funds to repair your home if disaster strikes.

In terms of personal property coverage, you generally want coverage for at least 50% of your dwelling coverage amount. That said, you can decrease or increase your limit if you wish. Hence, it is usually suggested to take inventory of your home and speak with your agent for the best recommended coverage. An insurance agent can also help you determine whether to obtain coverage equivalent to your property’s replacement coverage (which does not factor in depreciation) and the actual cash value (which usually is cheaper but bases claims payments on your belongings’ depreciated value).

Cost of homeowners insurance

Again, to determine the cost of your homeowners insurance, you should speak with your insurance agent. Typically though, the following are considered:

• The cost to rebuild your home
• Your coverage limits and deductibles
• Your home’s age
• Your claims history as well as the history of claims in your neighborhood
• Where you live

If working with an experienced and cost-saving focused agent, as Glendora Homeowners Insurance – OAK Insurance Solutions, there are factors to take into consideration to reduce your costs. These can include:

• Obtaining coverage based on your home’s rebuilding cost and not your purchase price. A home’s purchase price includes the land under your house, which isn’t at risk. Therefore, if it’s based on the higher valued purchase price, it can mean you have to pay higher premiums.
• Some companies that sell homeowners, auto, and liability coverages will take 5 to 10% off your premium if you buy two or more policies from them. And as you may have seen on OAK Insurance Solutions’ testimonials, clients are saving at least 15% by bundling their policies.
• Increase your home’s safety features. For instance, by having a stronger roof, modern heating/plumbing/electrical systems, smoke detectors, sophisticated sprinkler systems, smoke detectors, burglar alarms, dead bolt locks, or etc…you can see substantially more discounts.
• Although many fall into credit problems, by working to improve and maintain good credit, you can see additional discounts to your policy.
• Annually review your homeowners insurance policy and update your coverage. For instance, if you have floater or extra insurance covering a high-end computer which you no longer own, then you may want to cancel that coverage and reduce your rates.
• For added discounts contact OAK Insurance Solutions.

There you have it, the basics of homeowners insurance. To learn more about how you can save by increasing your coverage, contact OAK Insurance Solutions.

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