A cursory look at the first page of insurance terms and definitions might have you ready to run for cover — or put off finding an insurance agent even longer. I’m guessing you would have the same kind of response to this list of banking terms, but you’re not stuffing your savings into your mattress, are you? Insurance doesn’t have to be complicated, and just like banking, the average American needs to know only a handful of terms in order to navigate through what’s often a jargon-ridden maze.
Here at Nicholas Insurance, we want to help take some of the confusion out of the insurance process. So let’s get started.
What Kind of Homeowner’s Insurance Do I Need?
Generally, you want to be concerned with insuring your health, your life, your finances, your possessions. If you’re like most Americans, a house is the single most significant investment you’ll ever make, so you won’t want to skimp when it comes to your Homeowner’s Insurance. Guaranteed Replacement Coverage is a good idea; it basically means that your insurance company will completely replace your home — if it is destroyed, regardless of the amount of money involved.
Does Homeowner’s Insurance Cover My Home’s Contents?
It might. Or it might not. This is where you need to make sure you understand your Homeowner’s Insurance policy. Sometimes high-end items such as specialty electronics equipment, collectables, or fine jewelry can be excluded from such policies and require specialty riders.
What Doesn’t My Homeowner’s Policy Cover?
One major exemption to Homeowner’s Insurance relates to any damages caused by flooding. If your home is in a flood plain or your area is subject to hurricanes or tropical storms, you’ll want to be sure to have a separate Flood Policy in place.
While private insurers can also offer Flood Insurance, you can check out a government-sponsored program called the Federal Emergency Management Association’s National Flood Insurance Program. If you live in an area where earthquakes occur, you’ll want to seek out Earthquake Insurance, as well.
Do I Need Special Insurance for My Home Office?
With upwards of 20% of Americans telecommuting on a full-or part-time basis, this is a consideration that an increasing number of homeowners need to consider. Most of the equipment used in the typical home office (computers, copy machines, etc.) is excluded from a typical Homeowner’s Policy, so you’ll need separate insurance policies or riders to cover those items. In addition, those who meet with clients in their home office will need Liability Insurance, too.
Can Homeowner’s Insurance Protect Me from a Lawsuit?
Really, anyone can sue anyone at any time, for any reason, but you can have insurance to help cover a lawsuit brought against you. Both Homeowner’s and Renter’s Insurance come with liability limits, so if you believe you’re at risk, you may want to look into what’s referred to as an Umbrella Policy, which adds up to $1 million in additional Liability Coverage.
The Nicholas Insurance Agency, led by Greg Nicholas, is a family owned business serving the York county, Pennsylvania region. In the insurance business since 1981, Greg Nicholas helps families, businesses and individuals understand the value of different insurance products and make wise decisions when selecting the best insurance products for their specific situations.
Offering exclusively Allstate insurance products, the Nicholas Agency provides auto, homeowners, rental and landlord insurance as well as life & disability, recreational vehicle, motorcycle and personal liability insurance.
For more information, visit our two York, PA locations at Westgate Plaza or York Marketplace or call us at (717) 764-2024.
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