What You Need to Know about Detroit Homeowners insurance

You will need homeowners insurance if you are planning to purchase a house or condo in Detroit.

Talk to your agent to make sure that you have adequate coverage for your home and belongings.   The mortgage company will require that you have homeowners insurance, and the coverage has to exceed your mortgage. There are two types of policy that you can get:

  • Replacement Cost Policy: This policy will allow you to replace, repair, or rebuild your damaged property to its original condition, with the same quality materials. That means if you have plaster walls, your replacement is plaster walls.  To purchase this type of policy, you must insure your home for an amount of insurance equal to or more than what it would cost to replace your property.
  • Market value Policy: This type of policy allows you to replace, repair, or rebuild your damaged property to a condition similar to what it was before the damage, using modern materials. This coverage will replace plaster walls with drywall.  To buy this type of policy, you must purchase an amount of insurance equal to the market value. In general, this type of policy provides less coverage than a Replacement cost policy.

Take an assessment from a realtor or your agent to make sure that you are not over-insuring your property.

Set your deductible to a level that is high enough that you can afford.  The deductible is the amount that you pay on the claim before the insurance starts to pay.  The higher the level you set, the lower the cost of your insurance will be.

Homeowners insurance what will be covered

Homeowners insurance can help to protect your personal property against fire, lightning, wind, hail, explosion, vandalism, smoke, or theft. You have two choices when it comes to insuring your personal property. The actual cash value (how much it is worth today) or its replacement value (how much it would cost to replace the item).  You will have to pay a little more to get the replacement value coverage.

Homeowners insurance can also provide valuable protection if your home is made unlivable due to a loss. This coverage provides a replacement home until you complete your home repairs. Usually, coverage is for a year.

Your homeowner’s policy can also provide medical payment to others for necessary medical expenses incurred or medically ascertained within three years from the date of accident or injury. This coverage does not apply to the insured or regular residents of the household and starts at $1000.

Liability coverage protects you from a lawsuit from injury claims and damage to other people’s property. This coverage would protect you from the lawsuit and also pay for the cost to defend you even if you are not at fault.   Liability limits start at $100,000.  Your liability limits should exceed the value of your house and cover the total assets you own.

If you are a renter, read about the coverage provided by a Detroit Renters’ insurance policy.

Discounts Available for your Detroit Homeowners Insurance:

  • Safety Discounts – Many companies offer discounts for installing smoke detectors, fire extinguishers, central burglar and fire alarms and deadbolt locks on the doors.
  • Renewal or Claims Free Discount – Most companies have policies that reward loyalty or offer discounts if you have renewed your insurance with the same company for several years.  Companies can also offer discounts if you have not had a claim with your company.  These discounts will be based on different criteria and will vary from company to company.
  • Multi-policy Discounts – Check with your agent to see if your company offers a Multi-policy discount.  This policy will reduce your premium if you have multiple policies with the same company.  For example, if your auto and home are with the same company, both policies will receive a discount.
  • Deductible – Increase your deductible, you will pay more out of pocket to repair the damage, but your premiums will be lower.

Please contact our office to answer all of your homeowner’s insurance questions.

Get a Detroit homeowner’s insurance policy with a phone call 248-277-4505, or fill out your information for a Detroit homeowner’s insurance quote to get a quote online.  If your home requires repair, read about the Detroit Home Repair Loan program.