Homeowner’s Insurance

What is homeowner’s insurance?

Homeowner’s insurance is a must have product to protect your most valuable asset, your home! Your home keeps you, your belongings, & your family safe during all different types of elements & gives you a safe place to be day-in & day-out. It is important to protect your home, so it can protect you, against all of these elements including rain, wind, fire, theft, tornadoes, hurricanes, & many other elements. These elements are known to insurance carriers as “risks” because there is a risk that any time a claim can occur.

JANUARY 2021 Homeowner’s Insurance Discounts!

Bundle Homeowner’s & Auto Insurance – 15%
Multi-Policy Discount – 10%
Military Discount -6%
Alarm Discount – 5%
New Home Discount – 5%
Newly Renovated Home Discount – 5%
HOA Fee Discount (Pay HOA Fees? Save 5% on Homeowner’s/Renter’s Insurance)
Good Credit Discount
Married Discount
Previous Insurance Discount
Prior Carrier Discount
Home Warranty Coverage
Auto Warranty Protection Coverage

How much is homeowner’s insurance?

Short Answer: As low as $45 PER MONTH for the best coverage!! There are several factors that go into producing your homeowner’s quote. One factor is your region. How many claims has ANY companies sustained in this region in the past year? A second factor is the cost of your home. If your home costs more because it is a mansion, then your insurance policy will cost more. A third factor is how new/updated is the home? If your home is 15 years old & now has a new roof, this can save you as much as $80 per year. It is important to have an agent, like me, who will ensure these updates are made known to the insurance carriers to continue finding all your discounts!! I have sold many homeowner’s policies for as low as $500 per year, without having “cut-rate coverage.” The last thing Stand Guard Insurance Agency would ever offer you, is coverage that is going to leave you standing in the rain!

How much homeowner’s coverage should I have?

The amount of coverage you SHOULD have is based off of millions of algorithms, starting with Coverage A of your policy. Coverage A on your Declarations Page shows you how much your structure will cost to re-build it. This includes the amount the insurance carrier will pay in the event of a claim for your “structure” (4 walls, roof, kitchen, bathrooms, fireplace, garages) Coverage A is calculated by the insurance carrier, that the agent is quoting from, to offer you the client! Once the carrier calculates Coverage A homes re-build & value has been established, the rest of the quote is “mostly” regulated by the State of Georgia Insurance Commissioner’s Office. Every insurance carrier offering insurance in the state of Georgia, have to offer a minimum guidelines of insurance. As you can see on the quote screen below, it shows percentages of Coverage A, that meet or exceeds all the minimum State of Georgia guidelines for insurance products.

What is a Homeowner’s Deductible?

As with all other insurance plans the higher your deductible the less your insurance premium will cost. Here at Stand Guard Insurance we consider the standard homeowner’s deductible $1,000. If your premium is $628 with a $1,000 deductible you could save about $25 per YEAR by raising your deductible to $1,500. If you listen to the Dave Ramsey, & other financial planners, they will tell you raise your deductible to save the money on your homeowner’s plan & invest the difference. While this can be good general advice, I do not recommend for everyone. It will take you 20 years to save the $25 per year to make up the 1 time IF you have a claim. What you should also consider before raising the deductible, more than the difference in price is this scenario. If you returned home & saw your house on fire, how much do you want to pay today?? The bill is due & this needed to be figured out yesterday!!

Why is the State of Georgia Insurance Office involved with my insurance?

Because basic algorithms such as if you own a 1,000 sq ft home that costs $50,000 to buy new, $60,000 to re-build will most likely hold around $30,000 of personal property, inside your structure. This personal property coverage can be found as “Coverage C” on your homeowner’s Declaration page. Coverage C is a mandated by the State of Georgia 50% of Coverage A value. Without the State of Georgia having this mandate, an insurance carrier could offer their cut rate policies & people not have enough insurance when a claim occurs!

Understanding Coverage C on My Declarations Page – Personal Property

Personal property is anything the insured owns inside the structure. It is a good idea to take ” Happy New Years” pictures of the inside of home & belongings. If you were to have a fire & lose everything, you will want proof for some items. This amount can add up quickly when resetting your life with new trash bags, trash cans, clothes, forks, beds, couches, TVs, tools, & other things that you HAD accumulated over the past years, & now lost. It is also important to know if your policy has certain max limits for cash kept in home, jewelry, computers, guns, art, & other high priced items you may own. Coverage C will always be a minimum of 50% of Coverage A value, mandated by the State of Georgia. I always have a talk with my clients about any high valuable items to make sure 50% will be enough for them!

Understanding Coverage B of My Declarations Page – Other Structures

Other structures can include any other structures on the insured’s property. It includes de-attached garages, sheds, barns, well houses, etc. It is regulated to be a minimum of 10% of Coverage A by the State of Georgia. Most homeowner’s policies do not exceed this 10% of coverage needed but I always have the conversation to make sure with my clients!

Understanding Coverage D of My Declarations Page – Loss of Use

This is a very misunderstood policy coverage by many people. This only takes effect in certain scenarios & is important that it is understood before a claim occurs. In this example, if your home burns down & will take 6 months to re-build. This money can be used to pay for other living arrangements BUT does only pay for EXTRA EXPENSES. What is an extra expense? Well, you still have a mortgage that you owe to the bank this month but you are also paying to live in an apartment because your home is being rebuilt! This is definitely an expense that you can’t deal with while having to replace your home & belongings.

Understanding Coverage E of My Declarations Page – Personal Liability

Most insurance agents cut this coverage down from the company recommended coverage, to a minimum coverage to help the client “save money.” Unfortunately, this is a cheaper coverage to have & does not save that much, because it does not cost that much. It is also the coverage that will protect YOU if someone is hurt on your property & decides to sue you for damages. The worst time to find out you got a less than recommended policy from your agent, is when you get a lawyer from a letter, notifying you about your lawsuit!

Understanding Coverage F of My Declarations Page – Medical Payments

This is coverage that will help in the case of a small accident at your home.