Homeowners Insurance

In addition to a homeowners insurance policy, an umbrella policy provides vital coverage for people who own a home, an auto mobile, and/or a boat. If you cause an accident, do you have enough coverage from your current policies to protect you? With limited coverage availability on your homeowners, car, and watercraft insurance, these policies can be easily exhausted if you are slapped with a lawsuit. Umbrella policies are designed to give added liability to the limits of home, auto, and boat insurance coverages. An umbrella policy will kick-in when these resources have been depleted and are not able to completely cover the costs of your accident.



  1. Know about exclusions to coverage. For example, most insurance policies do not cover flood or earthquake damage as a standard item. These types of coverage must be bought separately. 
  2. Know about dollar limitations on claims. Even if you are covered for a risk, there may be a limit on how much the insurer will pay. For example, many policies limit the amount paid for stolen jewelry unless items are insured separately. 
  3. Know the replacement cost. If your home is destroyed you’ll receive money to replace it only to the maximum of your coverage, so be sure your insurance is sufficient. This means that if your home is insured for $150,000 and it costs $180,000 to replace it, you’ll only receive $150,000. 
  4. Know the actual cash value. If you chose not to replace your home when it’s destroyed, you’ll receive replacement cost, less depreciation. This is called actual cash value. 
  5. Know the liability. Generally your homeowner’s insurance covers you for accidents that happen to other people on your property, including medical care, court costs, and awards by the court. However, there is usually an upper limit to the amount of coverage provided. Be sure that it’s sufficient if you have significant assets. 



Homeowners insurance is critical and if you carry a mortgage is a requirement by the mortgage company, and rightly so. If something were to happen to your home and it was destroyed completely, someone would still need to pay for it. So, if homeowners insurance were not required, you would have to pay for a home still that did not exist. Learn more about insurance policies by exploring the following link(s):