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Wichert Insurance Blog

All You Ever Wanted to Know About Insurance

Insurance Beyond Your First Home

Copy of What they never taught you about insuring a new home

As you move, your insurance needs often change.  However, there is rarely information to help you know if your current coverage is properly protecting you.

Not everything in this article may apply to you, but look at what does and ask yourself if you are adequately protected, or if you’re putting your hard-earned belongings at risk.

The purpose of this blog is to ensure homeowners are properly protected when buying their next home.

In this article, we will cover questions to ask yourself and things to consider to ensure your family and your well-being are adequately protected.



Is your home unique, or do you not want to rebuild your home as it stands?

The standard homeowner's policies contain replacement cost coverage.   Replacement cost coverage looks to rebuild your home with a structure of comparable size and quality.   With replacement coverage, it’s crucial that your limit of insurance factors in current construction costs versus the market value.  See our recent blog for more on this topic.  

Another option is to insure your home for an agreed-upon value.  Naturally, this coverage is called Agreed Value.   Agreed Value can be utilized for homes of unique value, such as historic homes.  Agreed value can also be used if you want to insure your property for an amount less than the actual replacement cost.  



Do you own expensive pieces of jewelry, collectibles, art, or other valuables?

The average homeowner’s policy will contain coverage limits for certain valuable items.   Jewelry, coins, and guns are often limited to a specified policy limit, such as $5,000 per category.   It is not unusual for the value of your items or even a single item to exceed the policy limit.  

To insure correctly, you can increase the specific limit, or you can schedule the specific item(s).   By scheduling an item(s), you also increase the potential causes of loss (i.e., disappearance) that will be insured. 



Are you considering buying a home warranty with your new home?

When you close your mortgage, rest assured that your mortgage company or realtor will try to sell you a home warranty policy.   This policy will cover the breakdown of the home’s furnace, air conditioner, appliances, etc.    Did you know that many homeowner’s policies include or offer this coverage for a fraction of the cost? 

Before you buy the home warranty, check your homeowner’s policy.  If you are unsure or you would like to embed this coverage in your coverage, give us a call. 



What’s your net worth?

We buy insurance to transfer risk that we cannot afford to accept individually.  It’s much easier to pay a couple of thousand dollars to an insurance company to insure hundreds of thousands of dollars of property or potential liability versus paying for those claims on our own.  As you accumulate assets, it is also essential to protect those assets.  Your coverage should increase with your assets.  You should consider buying liability and umbrella limits of at least $1M, equal to your net worth. 



Do you have your homeowner and auto insurance placed with different carriers?

As you buy your new home, you will be asked to acquire insurance coverage for your new home.   This request often leads to insuring your home and auto insurance policies with separate insurance companies.   The most substantial discounts available are usually found by placing these two policies with one insurance company.  It is beneficial to bundle your policies with one carrier.  Not to mention, it reduces the number of bills or invoices that you have to pay. 



How well are you protected?

Insurance is about protecting your livelihood and your assets.   When we buy a home, we are more concerned with appeasing the mortgage requirements than we are protecting ourselves. But now that you have assets, there is more at stake.

When was the last time you had an insurance professional complete a comprehensive coverage review?   Despite what the TV commercials tell you, no two insurance policies are the same.  




Do you have a trusted insurance advisor to insure your well-being?

It’s easy in 2020 to buy insurance without ever meeting or talking with your agent or, for that matter, the same person.  If you are not an insurance expert and your agent doesn’t understand your needs, how do you know your well-being and future is properly protected?   

Insurance coverage is incredibly complicated.  When you are making a change, don’t assume two different policies offer the same coverage, nor either has the coverage you need. 

In the event of claim, do you have someone to advocate on your behalf, or are you just dealing with someone employed by the insurance company? 

Similar to an attorney or accountant, your local independent agent acts as a trusted advisor for you in insurance-related matters.