Detroit Michigan Homeowners insurance
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 that the coverage on your home has to exceed the mortgage amount. 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 kind and quality materials. That means if you have plaster walls, it will be replaced with plaster walls. To purchase this type of policy, you must insure your home for an amount of insurance equal to or greater than 80% of 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 means that if you have plaster walls the walls will be replaced 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 accurate inventory of your possessions and get 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, windstorm, hail, explosion, volcanic eruption, riots, aircraft damage, vandalism, vehicle damage, smoke, or theft. You have two choices when it comes to insuring your personal property you can insure your property for 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. Your policy can pay for another place to live while your home is being repaired.
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 is $1000, but additional limits can be purchased.
There is coverage to help to protect you in case of a lawsuit due to a liability claim caused by someone being injured in your home or damage to someone’s property. This coverage would protect you from the lawsuit and also pay for the cost to defend you even if you were deemed to be not at fault. Liability limits start at $100,000, but additional limits may be purchased. Your liability limits should at least exceed the cost of your house and be enough to cover whatever your total assets are.
View this post for more details on what is covered on a Michigan homeowners 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 carry different lines of insurance 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 have to 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 homeowners insurance policy with a phone call 248-888-1134, or fill out your information for local area homeowners insurance agent to get a quote online.