Homeowner FAQ's
Knowing the facts about your homeowner's insurance can save you valuable time and money.
- How is my premium calculated?
- How can I lower my insurance premium?
- What's a deductible?
- What's the difference between Replacement Cost (RC) and Actual Cash Value (ACV) settlement methods?
- What is depreciation?
- Which coverage is best for me?
- How do I calculate how much it would cost to rebuild my house entirely?
- What is Personal Property coverage?
- If I have a loss, do I have to show proof of what was in my home?
- Is my engagement ring covered by my basic home insurance policy?
- Will my home insurance policy cover damage caused by flooding?
- Once I take out my home insurance policy, can I upgrade or reduce my coverage?
How is my premium calculated?
Personal credit is viewed as a responsibility factor that can affect rates. Some other common factors include your home's size, age, construction, geographic location, the cost of materials to rebuild. Additional policies with one insurance company will result in a multi policy discount or package discount.
How can I lower my insurance premium?
There are several practical and easy ways to lower your homeowner insurance premium.
- You can get a "package deal" by combining your homeowner's and auto insurance policies with the same company.
- Install a central station fire and burglar alarm system.
- Choose a higher deductible.
- Make your insurance company aware of any newly installed electric, heating system, plumbing and/or roof, all of which may lower your premium.
- Annual homeowner policy reviews with a qualified agent can result in savings by removing unnecessary coverage as your needs change.
What's a deductible?
It's simply the amount of any loss you take on yourself. Every policy includes some deductible, but if you're willing to "foot the bill" for a larger amount, your premium will decrease.
What's the difference between Replacement Cost (RC) and Actual Cash Value (ACV) settlement methods?
It's simple. The Replacement Cost Option pays you the dollar amount it will cost to replace your possessions, without any deduction for depreciation. Actual Cash Value includes deduction for depreciation.
What is depreciation?
Depreciation is the decrease in value of an object due to the wear and tear that comes with age. Think of it in terms of your car. Chances are its worth a lot less today than the day you bought it.
Which coverage is best for me?
Call us and we'll go through these and many other options you have as a homeowner.
How do I calculate how much it would cost to rebuild my house entirely?
It depends on the materials used in your home's construction, square footage and the cost of construction in your area. The "dwelling" amount on the policy declaration page is the amount of coverage to rebuild a house. Call us at 1-866-GLENNON for a free, no-obligation home insurance quote. We'll make sure you choose the right amount of protection.
What is Personal Property coverage?
Personal Property or "contents" coverage reimburses you for losses of things you own that are not considered a permanent part of the home's structure: furniture, computers, clothing, etc.
If I have a loss, do I have to show proof of what was in my home?
You would have to provide a list of all items lost or damaged. It's a good idea to take photos of every room, make a room-by-room list of everything you own, along with the cost and when you bought each item. Keep credit-card receipts for higher value items in a safe location outside the home.
Is my engagement ring covered by my basic home insurance policy?
It depends on its worth and the cause of the loss. Your engagement ring or any other jewelry not specifically listed in the policy may be restricted to $1000 or less. There are also restrictions on silverware, furs, fine art, collections, money and other valuable items.
BUT... we can help with that, too! Call us to discuss how you can list these items at their fair value on your home, condo or renter's insurance policy.
Will my home insurance policy cover damage caused by flooding?
No. All standard home insurance policies exclude water damage caused by floods. If you think you need flood insurance, click here.
Once I take out my home insurance policy, can I upgrade or reduce my coverage?
Absolutely! At John J. Glennon Inc., we recommend you speak with us on an annual basis, at least. As your circumstances change (growing family, empty nest, home improvements, etc.) so do your insurance needs. We'll update your policy to adapt to any or all of these changes.
It's never been more important to protect the investment in your home. Be sure you have all the coverage you need at a fair and equitable premium. Let us help. 1-866-GLENNON
