If you’re buying a home and have a mortgage, in most cases you will need to purchase homeowners insurance. The cost will vary according to the size and construction of the home: where it is (proximity to the coast or other natural hazards, e.g. fault line, wildfire zone); fire safety features; anti-theft devices and the property’s loss history. Insure your home for the cost of rebuilding it, not the market price. And make certain that the value of your insurance policy is keeping up with increases in local building costs.

What is the proper amount of Homeowners Insurance?


  • Current Market Value
  • Amount of Mortgage
  • Purchase Price
  • Rebuilding Cost

In today’s depreciated homeowners market it might seem unfair, but to rebuild your home this is what it would cost at today’s prices (which continue to rise every year).

What Coverages are Available?

Your home and separate structures are covered for almost any type of damage except for these common exclusions:

  • Wear & Tear
  • War
  • Earth Movement
  • Certain Types of Animals
  • Nuclear Hazard
  • Earthquake*
  • Certain Business Activity
  • Flood*
  • Back Up of Sewer*
  • Water Seepage

*These optional coverages can be added for an additional premium for many other items that are normally excluded or have limited coverage amounts which can be covered with an Agent.Coverage for your home is available up to the limits determined by the rebuilding cost value data. Certain business limitations apply. Your separate structures are covered up to 10% of the amount of coverage on your house or the amount specified in your policy (this varies by company). Higher limits are available for an additional premium. Certain business limitations apply.

Contents Coverage includes:

  • Fire and Lightning
  • Vandalism
  • Weight of Ice, Snow, Sleet
  • Explosion
  • Falling Objects
  • Theft
  • Aircraft
  • Windstorm
  • Smoke Damage (if sudden & accidental)
  • Vehicles
  • Hail
  • Sudden & Accidental damage from artificially generated electrical current (does not include loss to electronic components)
  • Water or Steam (Accidentally discharged from a plumbing system appliance)
  • Sudden & Accidental bulging, cracking, or rupture of water or steam from a water heating, household appliance or air conditioning system

Trees, Shrubs, Plants, and Lawns Coverage includes:

  • Fire, Lightning, Vandalism
  • Vehicles (except those operated by the residents)
  • Riot or Civil Commotion
  • Aircraft
  • Theft
  • Explosion

Coverages may vary by company. Each limit for coverage is specified within your policy.