Homeowners Test

Last week’s blog, “The Case for a Good Agent,” called attention to why a good insurance agent is necessary to remove the guesswork of buying insurance and to having the satisfaction of knowing that you’re fully covered when a loss occurs.

To further reinforce that idea, we’ve put together a few questions to test your knowledge of how a basic homeowners policy works.

If your home burned down tomorrow, would you have the funds to immediately replace the contents?

Take a look at the questions below and then check your answers against the Key below.

No peeking at the answers before finishing!

• If the water and sewer service lines that supply my home break, I don’t have to worry because my basic homeowners policy will pay for the repairs.
  • a) True
  • b) False
• Even though I live in earthquake-prone California, I don’t need to purchase earthquake insurance for my home because the federal government, through FEMA, will pay for all damage to my home.
  • a) True
  • b) False
• My bathroom floor is damaged due to the caulking around the shower/tub wearing down, but I’ll have to pay for this repair myself as my insurance policy does not cover something that I should have maintained.
  • a) True
  • b) False
• We’re starting a home remodel and plan to move out for the next 2 months, but I don’t need to worry about contacting my agent until after the work is done.
  • a) True
  • b) False
• I recently inherited my grandmother’s watch and fine jewelry. These are high dollar items, but the sentimental value is so great that I want to make sure they’re protected. I need to contact my agent straight-away.
  • a) True
  • b) False

Answer Key

• False – The water and sewer lines that supply your home are not covered in the basic homeowners policy. This can be a major and unexpected expense, especially with a home built over 20 years ago.
• False – FEMA aid generally only provides grants to cover minimal repairs to make a home “safe, sanitary and functional.” The most that FEMA will give anyone is $31,000, with the average grant being less than $10,000.
• True – A basic homeowners policy does not provide coverage for “Maintenance Related Damage.” if the cause of loss is for something that should have been maintained.
• False – It’s important that you talk to your agent before you move out - even temporarily. If your home is vacant for more than 30 days, a number of important coverages in your policy will suspend.
• True – A basic homeowners policy has limits on theft coverage for jewelry, watches and furs.

How well did you do? Did you get it all right?

If you’re considering insurance as a business, let us help you get off to the best possible start. Contact us to learn more!