Homeowner’s Insurance Discounts

Homeowers discount to be sure are on your policy

Every homeowners insurance policy is priced based on a starting rate, then discounted, or charged, for various factors that the insurance company feels minimizes or increases the risk of a loss.  If too many factors, or a single factor such as ownership of certain kinds of dogs or proximity to coastline exist, some companies will simply decline coverage.

The biggeest discounts you should have (when they apply) are:

New home discount.  These are either buried in the base rates or have specific credit.  Newer homes don’t have electrical fires, water damage, or other problems that older homes have. 

Good credit / insurance score.  An insurance score is based in part on your credit.  The idea is that  people who take care of their finances carefully generally take good care of their homes as well. 

Clear claims history.  No prior claims is always a good barometer, so even though none of us can predict our own claims, insurance companies view your claims history carefully.  Frequency and severity are two metrics, and frequency carrie smuch more wieght than severity.  Thus three small losses in four years presents a more risky profile to an underwriter than a single fire or other large claim. 

At home resident.  If someone is typicallly at home during the day, some companies offer credits.  This is also listed as a retirees credit. 

Alarm credits – a burglar or fire alarm is a long time credit.  Even better if contacted to a central  monitoring station. 

Charges: some insurance companies add a surcharge for dogs, swimming pools, and other specific conditions.  

 

At Gordon  Insurance, we view your overall profile as and work hard to find the best fit for coverages you need with the best available pricing.  Always feel free to contact us for more on Home insurance, auto insurance, life insurance or other personal insurance needs.

12 Essential Facts For Homeowners

Homeowner’s Checklist  

When you really need it, there’s nothing more important than having your insurance set up right!  Here’s a general chesklist; call us at 800-649-3252 if any situation here arises or  if you just have questions.

1. The replacement cost estimate of your home is the starting point of your home insurance.  Always notify us if you’re planning an addition or renovation!
2. Offices in the home require special coverage.  If you have an office in your home, or run any kind of business from your home, please let us know.  Business use of a detached structure is particulalry important, requiring “buying-back” building coverage.
3. Every policy has limitations for theft of jewelry, furs, guns, silverware, etc..   As a rule of thumb, items over $500 – $1000 in value deserve specific coverage.
4. Identity Theft is a growing threat we all need to take seriously.   Most insurance carriers offer coverage.  Please call us about protection that may be available through an add-on endorsement to your homeowner policy.
5. The homeowner policy does not cover loss due to Earthquake.  Coverage can usually be added by endorsement for an additional cost.   Earthquakes aren’t limited only to California! 
6. The homeowner policy does not include loss to your property due to Flood, or any groundwater seepage.  Flood coverage is offered through the National Flood Insurance Program (NFIP) and available through our office.  
7. Massachusetts Law requires that you obtain Workers’ Compensation Insurance if you employ anyone working more than 16 hours per week (such as a nanny).  This we can arrange here as well.  The cost is based on the industry you’re in and your payroll.
8. Condominium unit owners have special needs, particularly for their own personal property (non-building items). Additions and alterations that become a permanent part of the building, but for which you are responsible, may need to be covered by a special endorsement (differs with associations – we’ll help you determine this with a copy of your condo documents). 
9. The high settlements being awarded by the courts today for personal injury suits mean you should consider having a Personal Catastrophe Liability (excess – umbrella) policy.  Ask us about a $1,000,000 excess policy if you do not already have one.  (Higher limits are also available)
10. Any dwelling left unoccupied for 60 days is considered vacant and fire coverage is cancelled.  If you plan to move from your house, let us know ahead of time so that we can make arrangements to continue coverage.
11. ATVs, snowmobiles and boats create situations that call for specific coverage.  Please let us know if you own one or more of these items, particularly if they are not specifically insured already.
12. Don’t miss out on account discounts for insuring your home and auto together, at Gordon.

 

Protect Your Property

 

For Insurance and Risk Management Solutions, visit us at our website for pertinent information or to obtain a quote.

Homeowners Insurance

Homeowners insurance provides a broad array of personal insurance coverages, for owners of homes, as well as condo owners and renters / tenants. A homeowners is known as a “package” policy, because it includes both protection for your property (your personal items, the house, and any detached buildings), as well as liability (defense and judgment costs if you are sued).

The most common homeowners policy is the HO-3. However, some companies now offer the broader HO-5 on homes that meet specific underwriting standards. For a detailed summary of why the HO-5 is a better value, click to our HO-3 vs. HO-5 page for a list of differences.

The HO-4 is used for renters, and has no building coverage, and the HO-6 is specially designed to address condo owners needs.
Below lists the different kinds of homeowners policies:

Policy form: HO-1
Generally Known As: Basic
Used For: Camps, homes with no interior plumbing, no central heat, etc.
Characterized By: “Basic Perils”: extremely limited coverage (Fire and lightning, with vandalism at an additional cost). Archaic; Used rarely.

Policy Form: HO-2
Generally Known As: Broad
Used For: similar to HO-1, on camps, unimproved old homes
Characterized By: Named Perils on Dwelling and Contents; seldom used except when company requires.

Policy Form: HO-3
Generally Known as: Special
Used For: most commonly purchased home insurance, minimum required by lenders for new home purchases
Characterized by: “Open Perils” on Dwelling (the house); “Named Perils” on Contents (your stuff): Additional coverages may be added by endorsement (such as “replacement cost” treatment, personal injury).

Policy Form: HO-4
Generally Known As: Tenants policy
Used For: Tenants, apartment renters
Characterized By: No coverage for building (that’s the landlord’s responsibility), just Contents and Liability protection.

Policy Form: HO-5
Generally Known As: Special Building and Contents
Used For: newer, preferred homes, offered selectively by a few companies.
Characterized By: Great if it’s available “Open Perils” on Dwelling; “Open Perils” on Contents, replacement cost coverage, higher limits on jewelry, silverware, etc., plus broader liability protection.

Policy Form: HO-6
Generally Known As: Condo Policy
Used For: Condominium owners
Characterized By: Coverage on personal property as with HO-4, but also can include coverage for building (e.g. interior walls, build-outs), and other condo owners’ needs.

And for risk mitigation and insurance solutions, look to www.agordon.com for topical and relevant resources.