Shopping for homeowners insurance in Camp Hill PA can be difficult, but it is an important part of being a responsible homeowner. There are many choices out there, and many things to consider when choosing a policy. Below, readers will learn what to look for when shopping for coverage.
This is the first consideration most clients make, but it should not be the sole determining factor. Policies with lower premiums typically have higher deductibles than those where the premium is slightly higher.
Many people do not fully consider the implications of a deductible until they make a claim. However, a deductible makes a substantial difference in how a policy responds at claim time. The deductible is the money the policyholder pays out of pocket after a loss, and they tend to be higher in certain areas.
Home insurance policies, sometimes called HO3s, are written on an all peril basis. This means that if a peril is not specifically excluded, it is covered. The most common exclusions include mold, fungus, collapse, floods, earthquakes and wet rot. Flood insurance is bought separately, and coverage for certain exclusions can be added through endorsements.
Those unfamiliar with insurance terminology may think that an endorsement has more relevance in politics than in homeowners insurance in Camp Hil, PA. An endorsement adds, removes or modifies coverage on a home insurance policy. Some endorsements are almost always included on policies because they provide value at a low cost. Below are a few to consider:
- Personal property replacement. On HO3 policies, personal property losses are covered according to the cash value, which means that compensation occurs after depreciation and age are considered. With a replacement cost endorsement, the homeowner will receive the full replacement cost of everything that’s covered.
- Extended replacement expense. This endorsement gives an additional dwelling coverage amount after a total loss. This protects homeowners from inflation after a widespread disaster like a hurricane.
- Sump overflow or backup: These, along with wet rot, fungus, and mold, are typically excluded but can be covered with endorsements up to a set limit.
When shopping for homeowner’s insurance with Farnham Insurance Agency, customers should ensure that they are comfortable with coverage amounts for dwellings, other structures, loss of use and personal property. If there’s a loss and the homeowner lacks sufficient coverage, they may find themselves paying more than the deductible to rebuild the home.