March 29, 2017
Rathbun Insurance
Homeowners Insurance FAQs
Q: What is homeowners insurance?
A: Homeowners insurance is a form of personal lines insurance. The typical homeowners policy has two main sections: 1) covers the property of the insured and 2) provides personal liability coverage to the insured.
 
Q: What do I need to know when purchasing homeowners insurance?
A:
  • Get the amount and type of insurance that you need.
  • Determine the amount of personal property insurance and personal liability coverage that you need.
  • Select any additional endorsements you want to add to your policy. For example, do you want the personal property replacement cost endorsement?
 
Q: What is "actual cash value"?
A: When "actual cash value" is used in a policy, a policy owner is entitled to the depreciated value of the damaged property.
 
Q: What is replacement cost"?
A: When "replacement cost" coverage is used in a policy, a policy owner is reimbursed an amount necessary to replace the article with one of similar type and quality at current prices.

This is the preferred method of insuring your property. Rathbun Insurance can assist you in determining the proper amount of coverage to replace your home. The amount you cover it for is ultimately your decision.
 
Q: Where and when is my personal property covered?
A: Coverage C of a homeowners policy provides named perils coverage. This applies to all your personal property (except property that is specifically excluded).
 
Q: Should I purchase earthquake coverage?
A: Direct damages due to earthquakes are not covered under the standard homeowners insurance policy. If you live in an area that is prone to earthquakes, you may want to consider adding an earthquake endorsement to your homeowners insurance policy. This endorsement will cover damages due to earthquakes, landslides, volcanic eruptions and other earth movements.
 
Q: Should I purchase flood coverage?
A: Whether your property lies in a flood plain or not you can still apply for flood insurance. The rates and coverage options are all set by the Federal Government, but the paperwork is issued by a variety of carriers. If you would like a rate please call us and we would be glad to work on this for you.
 
Q: How do I sign up for electronic deduction or change the checking account my premium is drawn from?
A: To sign up please click the link below that will take you to the EFT page which has the necessary forms for most insurance carriers. Simply click on the form, print it, complete it and either mail, fax or email the form back to us and we will set this up for you.
Click here to go to the EFT Forms page.