Homeowners Insurance and Policy Choices
BY | HUB CAROLINAS
Choosing a homeowner’s insurance
company and policy that fits your needs
is a major step for a first-time homebuyer
or even a seasoned one. Because of that,
figuring out which insurer to go with or
how much coverage to buy can be difficult.
It is critical to have a knowledgeable
insurance advisor who will serve as your
advocate to the insurance company and
help pull as much coverage as they can
We understand your complex needs.
Insurance is complicated. That's why to
protect one's family and possessions, cost
should not be the only consideration—
understanding potential risks, policy
definitions, exclusions and endorsements,
and limits and options are critical.
Our personal lines professionals at HUB
Carolinas are a special team for larger, more
complex clients.
HUB Carolinas
50 Palmetto Bay Rd.
Hilton Head Island, SC
843.686.0709
hubinternational.com
from the policies you have. An advisor can
complete a comprehensive review of all
your exposures and explain the risks, so
that you are not surprised in the event of a
disaster.
Standard homeowners insurance
does not cover damage caused by natural
disasters, like hurricanes, high winds, hail,
floods and earthquakes. If you live in an
area that is exposed to these risks, you may
have to pay more for endorsements or
add-ons.
Often times, individuals do not
purchase sufficient coverage and end
up being underinsured. Buying the
right kind of coverage is also important.
While most insurance companies sell the
same coverage types, some offer unique
discounts. Discounts are often offered for
bundling your auto and home insurance
through the same company.
Along with choosing a coverage type
and amount, you also have the choice
of two coverage levels – replacement
cost and actual cash value (ACV). Many
homebuyers prefer replacement cost
because if something were to happen
to their home, this level of coverage
will replace it as if it were brand new. In
contrast, some homebuyers prefer ACV
because the premium is generally lower.
Many factors determine the cost of
your homeowners policy, including:
• The square footage of your home and
any additional structures
• How much housing costs in the area
• Your home’s construction, materials
and features
• Its proximity to a water source and a
fire station
• Condition of plumbing, heating and
electrical systems
• The likelihood of natural disasters
• Crime in your neighborhood
Most, if not all, insurance companies use
credit-based insurance scores to set policy
premiums. They also use these scores
to see if someone’s eligible for coverage;
the better your score, the better your
premium.
A qualified insurance professional
will conduct a thorough insurance needs
analysis and provide you with policy
recommendations that are based not just
on knowledge of company ratings, but on
personal dealings with the companies he
or she is recommending.
The “right company” for you is the
one that provides you with appropriate
recommendations, products and prices,
has a record of outstanding customer
service, and the financial capacity to meet
its financial obligations to you and your
beneficiaries when they come due.
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