Your home is supposed to be your safe space for you and your family. Owning a home is one of the most significant investments anyone ever makes in their lifetime. Obtaining insurance for a home should always be just as important as choosing how you will live, move, and create memories in your home.
Insurance for a home is not always required by law, but in America, at least 85% of homeowners have homeowner’s insurance. Being a knowledgeable insurance agent in the Portland area, we get our fair share of questions about homeowner’s insurance. Here are some frequently asked questions surrounding insurance for a home.
Why does homeowner’s insurance go off replacement costs instead of resale value?
Replacement costs are the actual costs of fixing or replacing a home if a qualified claim is made against the insurance policy. If the materials and labor costs are higher in today’s market than 15 years ago, then the replacement cost may be higher than the sale price from 15 years ago. In some areas of the country, the opposite is true. Sometimes labor and materials cost less than the home’s resale value, so the homeowner’s insurance policy will be for a smaller amount.
What is a qualifying event?
Qualifying events are outlined in your insurance policy. Many homeowner’s insurance policies cover hail, lightning, theft, vandalism, and other common issues. In some areas of the country, you must pay for additional flood, windstorm, hurricane, tornado, and earthquake coverage. Each policy explains what is covered and what is not covered. A qualified insurance agent can walk you through your unique needs.
If homeowner’s insurance isn’t required by law, why does my mortgage company make me have it?
Homeowner’s insurance isn’t required by law for those who own their homes outright. For homeowners who still have a lienholder against the house, the lienholder may require sufficient insurance coverage to protect the investment if foreclosure conditions are met. When the home is paid in full, you can drop the policy altogether, although we strongly discourage that.
If my spouse injures themselves while working in the garage, will the homeowner’s insurance pay for the medical bill?
Typically, the answer is no. Homeowner’s insurance only covers medical bills for those who do not live in your home.
Contact Your Portland Homeowner’s Insurance Company
Faithfully serving the Portland area for the last 40 years, we’re here to help you find the proper homeowner’s insurance for your needs. Contact us today for a free quote!