Arvada Insurance: Different Types of Home Insurance?

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Did you know there are different types of home insurance.   Each policy type varies dramatically in the coverage it provides.  The following types of homeowners policies are fairly standard across the country though they might differ slightly in coverage or name across different states.

If you own the home you live in, you have several policies to choose from. The most popular policy type is the HO-3, which provides the broadest coverage.
Policy Types: 
HO-1: Limited coverage policy
This “bare bones” policy covers you against 10 named disasters (fire, lightning, and wind to name a few). It’s no longer available in most states.

HO-2: Basic policy
A basic policy that provides protection against 16 named disasters instead of 10. There is a version of HO-2 designed for mobile homes.
HO-3: The most popular policy
This “special” policy protects your home from all perils except those specifically excluded.

Coverage Levels
Besides the different policy types, there are also varying degrees of claim payment.  The following list outlines each one.

  1. Actual cash value.  
    This type of policy pays to replace your home or possessions minus a deduction for depreciation.
  2. Replacement cost.  
    The policy pays the cost of rebuilding/repairing your home or replacing your possessions without a deduction for depreciation.
  3. Guaranteed or extended replacement cost.  
    This policy offers the highest level of protection. A guaranteed replacement cost policy pays whatever it costs to rebuild your home as it was before the fire or other disaster–even if it exceeds the policy limit. This gives you protection against sudden increases in construction costs due to a shortage of building materials after a widespread disaster or other unexpected situations. It generally won’t cover the cost of upgrading the house to comply with current building codes. You can, however, get an endorsement (or an addition to) your policy called Ordinance or Law to help pay for these additional costs. A guaranteed replacement cost policy may not be available if you own an older home.Some insurance companies offer an extended, rather than a guaranteed replacement cost policy. An extended policy pays a certain percentage over the limit to rebuild your home. Generally, it is 20 to 25 percent more than the limit of the policy. For example, if you took out a policy for $100,000, you could get up to an extra $20,000 or $25,000 of coverage.Even though a guaranteed/extended replacement cost policy may be a bit more expensive, it offers the best financial protection against disasters for your home. These coverages, however, may not be available in all states or from all companies.
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What Does a Denver Homeowners Insurance Policy Cover?

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One of the questions we frequently receive from our Denver and Arvada clients is what coverage their homeowners insurance policy specifically covers.
A standard homeowners insurance policy includes four essential types of coverage:

  1. Coverage for the structure of your home.
  2. Coverage for your personal belongings.
  3. Liability protection.
  4. Additional living expenses in the event you are temporarily unable to live in your home because of a fire or other insured disaster.

1. THE STRUCTURE OF YOUR HOUSE

This is the primary coverage provided by a homeowners insurance policy and pays to repair or rebuild your home if it is damaged or destroyed by a covered claim.  It’s important to note that damage caused by a flood, earthquake or routine wear and tear and not included in standard homeowners policies.  Also, when purchasing coverage for the structure of your home, it is important to buy enough to rebuild your home.

2. YOUR PERSONAL BELONGINGS

Your furniture, clothes, and other personal items are covered if they are stolen or destroyed by a covered claim on your policy.  The limit of insurance provided is usually a percentage (typically 50 – 70%) of your home’s dwelling limit.

Most insurance companies include off-premises coverage as part of the policy. This means that your belongings are covered anywhere in the world. Some companies limit the amount to 10% of the amount of insurance you have for your possessions.

It’s also important to note that expensive items like jewelry, furs and silverware are covered, but there are usually dollar limits if they are stolen. Generally, you are covered for between $1,000 to $2,000 for all of your jewelry and furs. To insure these items to their full value, purchase a special personal property endorsement or floater and insure the item for it’s appraised value.

3. LIABILITY PROTECTION

Liability covers you against lawsuits for bodily injury or property damage that you or family members cause to other people. It also pays for damage caused by your pets.

The liability portion of your policy pays for both the cost of defending you in court and any court awards—up to the limit of your policy. You are also covered not just in your home, but anywhere in the world.

Your policy also provides no-fault medical coverage. In the event a friend or neighbor is injured in your home, he or she can simply submit medical bills to your insurance company. This way, expenses are paid without a liability claim being filed against you. You can generally get $1,000 to $5,000 worth of this coverage.

4. ADDITIONAL LIVING EXPENSES

This pays the additional costs of living away from home if you cannot live there due to damage from a fire, storm or other insured disaster. It covers hotel bills, restaurant meals and other expenses, over and above your customary living expenses, incurred while your home is being rebuilt.

Coverage for additional living expenses differs from company to company. Many policies provide coverage for about 20 percent of the insurance on your house. You can increase this coverage, however, for an additional premium. Some companies sell a policy that provides an unlimited amount of loss-of-use coverage, but for a limited amount of time.

If you have any additional questions on homeowners insurance; or, if you would like to receive a FREE insurance quote, please don’t hesitate to contact our office.

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10 Ways Arvada and Denver Metro Residents Can Save on Home Insuranc

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Over the past few weeks we have been providing tips and tricks for saving on auto insurance.   So this week we thought we would provide the top ways you can save money on your home insurance.

1. Ask for discounts

The quickest way to save money on your home insurance is to take advantage of the discounts available to you.   For example you may be able to add the following discounts to your policy:

  • Multi-policy discounts
  • Senior citizen discounts
  • Nonsmoker discounts
  • Claim-free discounts
  • Marital status discounts

Every insurance company offers different discounts, so we recommend working with an independent insurance agent to find out the what discounts are available to you.

2. Install security features

In 2009, burglary victims (in all structures, including homes) lost an estimated $4.6 billion to property damage and theft, according to the FBI.
Your insurance provider may offer discounts if you install safety features. For example, security features like deadbolts, fire extinguishers, and security alarms can add discounts anywhere from 5 percent to 20 percent.
3. Raise your deductible

Raising your deductible is one surefire way to lower your monthly homeowners insurance premium.  If you can afford to go slightly more out of pocket in the event of a claim, then you could potentially save another 10 to 15 percent.

4. Disaster-proof your property

Adding stronger weather-resistant features to your home like storm shutters or better roofing material can lead to dramatic savings on your insurance premiums, especially in areas that are prone to disasters like high winds or flooding.

5. Review your insurance policy

We recommend reviewing your insurance policy every year to ensure that you not only have the right insurance coverage, but that you also aren’t purchasing unnecessary coverage as well.

6. Double check your property limits

This may sound obvious, but if you paid $200,000 for your house, you don’t need to have $200,000 worth of coverage, because part of the purchase price included the lot your house sits on. You should carry insurance coverage equal to the cost of rebuilding the structure.

7. Inventory your possessions 

Understanding the right limit to use for your stuff can save you money on premiums and help you tremendously in the event of a claim.

Final Note
While it’s always nice to save money on your insurance, we don’t ever recommend purchasing liability and property limits  at lower amounts than what will sufficiently protect you and your family.   It’s never a good idea to put your personal assets in jeopardy to save $50 on your premiums.

If you would like to see where you can save more on your insurance premiums, or if you would like some insurance quotes on your home, please don’t hesitate to give us a call.

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7 Unusual Claims Covered by Homeowners Insurance

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We know that homeowners insurance is designed to cover your home and it contents.  Additionally, it provides liability protection for bodily injury and property damage for claims against you or members of your family.   It may also provide coverage for the loss of use of your home in the event of a claim.

However, there are some unusual items that you may not realize might also be covered by your homeowners policy.   The following seven claims are the most interesting claims we have seen successfully reimbursed by insurance companies.

It’s important to note, though, that every policy is different in coverage and the claims below may or may not be covered by your specific policy.  If you have a question or concern in regards to your coverages, limits, etc., please feel free to give our office a call.

1. Eaten Jewelry
Although animals are typically excluded from coverage, there was a case where a dog allegedly ate a piece of jewelry and the insurance company offered to buy the dog at an unbelievably high price in an effort to salvage the jewelry.

After the owner refused, the insurance company finally relented and paid for the lost jewelry, which may or may not have been sitting in the dog’s stomach.

2. Bug-Repellent Basement
A homeowner had pesticide stored in the basement of his home. After a fire at the home, the homeowner noticed that swarms of flies would come in to the basement die almost immediately. After experts from Cornell University were brought in to assess the damage, it was determined that the chemical, when heated by fire, actually dissolved into the concrete and became even more potent. As the pesticide was also toxic to humans, the house had to be demolished and rebuilt from the basement up.

3. A Dump Truck
A homeowner owned a full-size dump truck that he used for nothing else but to move firewood to and from his wood-burning stove. As the vehicle was not registered for the road and used for property maintenance, the vehicle was covered by the homeowners policy as personal property after it was destroyed.

4. A Wedding Relocation
A homeowner was supposed to have a wedding in his backyard for his daughter. However, a fire forced them to relocate the wedding to a hotel. The homeowner was able to claim the increased cost of the wedding under the ‘loss of use’ coverage on his policy.

5. Bad Wine
After a backup of a sewage pipe caused flooding to home, the repair crew used heat to speed up the drying process. The homeowners’ wine cellar was heated to approximately 85 degrees for almost 10 days while the repairs were done.

The effect of the heat destroyed all of the wine and the insurance company reimbursed the homeowner.

6. Expensive Ingredients
Expensive cooking ingredients such as imported olive oil are covered at full value, as long as the homeowner is not running a business out of the home.

So if you’re doing a lot of shopping at Whole Foods, we recommend you keep your receipts.

7. Animal Stampede
A homeowner lived next door to an individual that owned cows, horses, and goats. One day something spooked the animals so bad that they ran through the neighbors fence and actually destroyed part of the insured’s home.

As the animals were not the homeowners, his insurance policy paid for the damage caused by the animals.

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Video: Questions Every Arvada and Denver Resident Should Ask About Insurance Before Buying a Home

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Infographic: Top 5 Travel Nightmares

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As the summer comes to a close, many families use August for planned vacations.  However, lost luggage, a stolen cell phone, or a misplaced wallet or purse can quickly turn your dream vacation into a nightmare.
For example, did you know that over 3,000 luggage bags are lost every MINUTE or that cell phone thefts now account for 40% of all theft in every major U.S. city?
It is with these items in mind that we have compiled an infographic of the 5 most common vacation nightmares and tips on how you and your family can avoid them.
Have a great summer!
Click on the image below to view the full size version.

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Expert Service At This Denver Metro Insurance Agency

At the Holste Agency we pride ourselves on providing you with the best insurance services available at competitive prices. Our professional team provides a wide variety of services including personal insurance coverage, life insurance coverage, and commercial insurance coverage. We will also take the time to listen to you and ensure that we find that right coverage for your personal needs.  Please contact us today for your free estimate. We proudly serve the Denver Metro area and  look forward to working with you soon.

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Receive Personal Service From This Arvada Insurance Agency

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Are you looking for someone who understands your  insurance needs? Someone who will provide the best service possible? The Holste Agency is dedicated to helping our customers with all of their insurance needs, and we guarantee no hassles. Our professional staff are expertly trained and treat each of our clients like family. Let us assess your needs in order to provide the best service possible. Let Arvada’s insurance experts take care of you today. Call for an appointment or free estimate.

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Denver Metro Home Insurance Quotes

The Holste Agency can help you find Denver Metro home insurance quotes.  As an independent insurance agent, we have access to over fifty different insurance companies that will provide you with aggressive money-saving quotes on your home.  We will work closely with you to ensure you have the proper insurance coverage while still helping you take advantage of all the available insurance discounts.
For a free money-saving home insurance quote, please contact our office to find out more.

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Trusted Denver Metro Insurance Agent

The Holste Agency is the most trusted insurance agent in the Denver metro area. We guarantee to be the service and people you can count on. Our goal is to provide our clients with the best possible insurance at the most competitive prices. We have been serving the Denver area for over 7 years and look forward to working with you soon. Contact us today!

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