Home Insurance

Question: Does my Homeowners Insurance cover me if there is a flood?

Answer: Your Homeowner Insurance does not cover “rising water” from the outside, it may cover water pipe breaks, but flooding is a different thing. If you live in a Flood Zone, your mortgage company will typically require you to have Flood Insurance, but if you are not in a flood zone we recommend flood insurance as a precaution, and it is very inexpensive.

Question: Why is my Dwelling coverage amount higher than what I owe on my Home?

Answer: Because most policies that we offer cover your home for full replacement cost. You may only owe $100,000 for your home, but in the event that you had a complete loss on your home it may cost considerably more than that to replace that home with a new one. After the costs of removing debris and building at current rates. The insurance providers have what they call a “Replacement Cost Estimator” that tells them what a new home like yours would cost based on the square footage and interior and exterior design.

Question: Will my homeowners insurance premiums go up, if I make a claim?

Answer: The Home Insurance providers try to keep your premiums the same, because they value your business. Normally multiple claims from one household does increase your premiums, while a one time claim will rarely raise their rates. Some companies may raise rates because they had a major hail storm in an area for example, but they may also lower rates when an area shows lower than average claims.

Question: Why can my dwelling coverage required increase each year? Who determines that?

Answer: Because we are providing the dwelling coverages at full replacement cost, at times the insurance companies requires you to have insurance for more than what you owe on the home. The provider determines that based on the local cost to replace your home with a home like it at current costs in your area.

Question: I just closed on a new home and my first year of insurance was paid in full. How do I pay next year for my renewal?

Answer: If your first annual premium was paid in full, that normally means that like 99% of us, your insurance is “escrowed” or part of your monthly mortgage payment. That means that the mortgage company that you send your payments to every month pays the Insurance bill each year and just adds that to your monthly payment. So each year the Insurance Company bills your mortgage company for your annual premium.


Contact us now with additional questions for your specific situation.

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