Home Owner's Insurance - Any suggestions? (house, depreciation, deductible)

[LuvVA]

I am shopping for home owner's insurance and I am new to this.

Please let me know what are the things to be considered before deciding the policy.

Discounts:
deadbolts,
fire alarm
sprinklers ????
Security system
Fire hydrant
Multi-discount (auto)

As per fairfax county, the property's Improvement Assessment value is : $410 K, land value is around $200K.

Thanks in advance.

[metclubin]

You will get discounts for each category. I generally use the same company for auto and home. That saves me around 80-100 on auto policy.

[KM_W&M06]

We have home, property, and auto with USAA and it's very reasonable, much cheaper for the same coverage as compared to when I had AllState (only had auto then).

Also, we don't have it but I bet a home security system would lower your insurance too.

[LuvVA]

Thanks for your suggestions. I am planning to add home security system too.

[ACWhite]

Be sure to compare apples-to-apples of policies. For example, compare the exclusions or other important conditions (e.g., a company may not cover flood damage, sewer backup, etc.).

If you can afford a big deductible, e.g., 10% of the value of the house, some policies are much more affordable. Since you don't want to make small claims (because they cause your premiums to increase or may cause the company to cancel your policy altogether), a big deductible policy sometimes makes sense.

You don't want to insure the value of the land, since that will not be destroyed in a fire or hurricane. You want to insure the value of the house and property. Do you want a policy that provides for replacement value or depreciated value in the event of a loss? For most people the former is better. The premium isn't much higher, but if a fire wipes out your house, the much greater replacement value $ would come in handy. However, you want to read this provisions carefully because some companies say "replacement value" but then subtract some depreciation.

Either get a policy that has automatic increases in coverage as your house and stuff increase in value or replacement cost, or be sure to update your coverage regularly.

Just my two cents.

[LuvVA]

Originally Posted by ACWhite

Be sure to compare apples-to-apples of policies. For example, compare the exclusions or other important conditions (e.g., a company may not cover flood damage, sewer backup, etc.).

If you can afford a big deductible, e.g., 10% of the value of the house, some policies are much more affordable. Since you don't want to make small claims (because they cause your premiums to increase or may cause the company to cancel your policy altogether), a big deductible policy sometimes makes sense.

You don't want to insure the value of the land, since that will not be destroyed in a fire or hurricane. You want to insure the value of the house and property. Do you want a policy that provides for replacement value or depreciated value in the event of a loss? For most people the former is better. The premium isn't much higher, but if a fire wipes out your house, the much greater replacement value $ would come in handy. However, you want to read this provisions carefully because some companies say "replacement value" but then subtract some depreciation.

Either get a policy that has automatic increases in coverage as your house and stuff increase in value or replacement cost, or be sure to update your coverage regularly.

Just my two cents.

Thank you so much.

[ACWhite]

You're welcome. Also, my 10% should have been 1-2%. Good luck shopping!

[spencgr]

Originally Posted by ACWhite

lso, my 10% should have been 1-2%.

Whew! I have no idea what the average house costs around here, but I know it's expensive. Let's say $400K......I was shocked to think that you felt $40K was a good deductible amount in order to save a few hundred bucks.

Glad you clarified!

[ACWhite]

Just to clarify, spencgr, people wouldn't ensure the land value. So if you have a $600K house but the lot is worth $400K, you would be ensuring only $200K (plus your stuff).

[LuvVA]

Originally Posted by ACWhite

You're welcome. Also, my 10% should have been 1-2%. Good luck shopping!

when I read it first, I read it as 1% for some reason, didn't realize that until I saw this post.

Thanks again.