Coverage for the place where you automatically connect to wi-fi.
Whether you’re shopping for your first home, your last one, or exploring options for insurance on your current house- we’re here to help you understand the ins and outs of Michigan homeowners insurance.
What coverage is included?
The coverages that are explained below are the way Conner Insurance Group will insure you. Please note that not all quotes are created equal, and not all policies are the same. Our interest is in protecting your investment, and making sure you have a thorough understanding of where you have coverage, and where you don’t.
While not all homeowners insurance policies are created equal, they all share a common
list of coverages. On your policy, you’ll see these listed as coverages A/B/C/D/E/F.
Your dwelling is your main structure, and the amount of coverage you have listed here is the backbone of your homeowners policy. When shopping for homeowners insurance, you’ll be asked a number of questions to determine a true replacement cost. Not to be confused with the current market value of your home, or what you paid for your home, this is the dollar value placed on the cost to completely rebuild your house from the ground up.
A homeowners policy sets separate limits for structures that are not attached to your main dwelling. This can include gazebos, fences, detached garages, pole barns, docks, etc. Unless modified, most policies will set this coverage at 10% of your dwelling limit.
Imagine you took your home, turned it upside down, and shook out all of your personal belongings. Besides having a mess, you’d probably be amazed at how much stuff you have. This section of your homeowners policy provides coverage for your belongings – clothes, electronics, appliances, furniture, etc. Your limit on coverage afforded to personal property is typically set at 50% of your dwelling limit, which is plenty for most people. However, it can also be modified in a number of ways should you find yourself needing additional coverage for personal property.
Liability is defined as any injury or property damage that arises as the result of negligence. This coverage protects you in the event that you do something or didn’t do something you should have- that resulted in another party suffering injury or property damage. A few examples would be a guest slipping on your icy driveway, your child’s friend breaking a bone after a trampoline stunt gone wrong, or your dog biting the neighbor’s child. Hitting someone on the golf course with a golf ball.
You know those legal firm commercials that boast about winning enormous settlements for their clients? This is the coverage that protects you from those guys.
This coverage exists to reimburse guests or visitors for immediate medical expenses incurred due to an injury at your home or on your property.
Additional Living Expense
If your home suffered serious damage making it unlivable for an extended period of time, could you afford to continue paying your mortgage while also paying for either an extended hotel stay or apartment lease? Something very few people think about until they need it, additional living expense provides you with coverage that reimburses you for the the additional costs incurred by you in the event of a covered loss. In the unfortunate event that a fire or other covered loss requires you to relocate, coverage F on your homeowners policy will step in to cover reasonable costs associated with an alternative living situation.
What factors affect your home insurance cost?
Everyone’s favorite question “Why does this seem so expensive?!”. While quoted prices from different carriers will vary, they’re all using similar metrics to decide how much to charge you for homeowners insurance. While the list below isn’t exhaustive, they’re common indicators that Michigan insurance carriers use to determine your final premium.
- The location of your home
- The Replacement Cost of Your Home
- Type and Age of Roof
- Claim History
- Policy Limits
- Gaps in Insurance History
- The accessibility by fire department, and proximity to a fire hydrant
- Discounts and Credits (Connect to Blog Post) AARP, College Degree, etc.
- Insurance Score