I can't understand Home Insurance stuff?

Question

I called for a quote on my home insurance and they start throwing all these numbers at me like they told me what my house is worth and then they tell me they cover like 90% and my wind and hail protection has a deductible. Does this sound right? I mean what all do I need to know?

Answer 1

Yep, it sounds right, but garbled.

Don't do this over the phone.  

Go down and do it in person, budget an hour, and let them explain everything to you.   There is way, WAY too much information to explain everything to you, on yahoo answers.

Answer 2

if you want to email me on the side I can help you out....

[e-mail]

I am a farmers insurance agent in IL

Answer 3

The 2 most important #s are the dwelling coverage - also called "A" coverage...

Make sure that's enough to REBUILD your house if it burns down

All the other coverages they went over are percentages of the dwelling amount - so they're set by the computer

Some companies like to "read thru" your coverages when you get a quote to make you feel that they're giving you MORE coverages than the other companies (gotta admit - State Farm does that too)

and the deductible...I know in NC there are 2 deductibles - we require a hurricane deductible this year because we are coastal counties

Don't be afraid of a high deductible because then you're less likely to put in small claims - which could cause a company to cancel you

Answer 4

Basically, the companies use a "replacement cost estimator" to get the value of your home.  Several factors are taken into consideration when insuring your home (square footage, 1 or 2 stories?, garage? attached? the county in which you live, etc.).  About covering 90%.  What they mean is in order to give you "replacement cost" on your home in lieu of ACV (actual cash value~you NEVER want this) the home needs to be insured at least 80% to value.  In other words, if your home is $100,000.00, then it should be insured for at least $81,000.00 in order to get "replacement cost" - which is definitely what you want.  

I am a TX licensed property & casualty and life & health agent.  If you have any more questions, I would be glad to help.  You can email me at [e-mail].