Homeowner Insurance

from Bilz Insurance

Kentucky Home Insurance Policies

Whether you are a first-time home buyer or a veteran of many years of house upkeep, your household is probably your most valuable investment. Should your home be damaged by fire, tornado or some other peril, you need an insurance company that will work with you to get you back into your home quickly and fairly. At Bilz Insurance, we will do just that by designing an insurance program with one of our many insurance companies to provide the broadest coverage for your insurance budget.

Homeowners insurance is a package policy that covers both property—structures and personal possessions—and liability. But do you understand what's covered?

Because it is comprehensive, your homeowners insurance policy may include coverage you are not even aware of. If your house burns down leaving you without a place to stay, your homeowners policy provides living expenses as well as reimbursement for damaged property. If your dog bites the neighbor’s child, your homeowners policy may pay for the child’s medical expenses.

Types of Perils

Kentucky homeowner insurance policies vary, but usually they cover damage caused by the following perils:

• Fire or lightning
• Windstorm or hail
• Explosions
• Riot or civil commotion
• Aircraft
• Vehicles
• Smoke
• Theft or vandalism (sometimes called malicious mischief)
• Falling objects
• Weight of ice, snow or sleet
• Freezing of a plumbing, heating, air conditioning or other such household

Of course, broader policies are available. In fact, many policies cover damage caused by “just about everything” unless the coverage is specifically excluded. Your Bilz representative can go into more detail with you about these important differences.

While most catastrophes are covered by a homeowners policy, floods and earthquake are normally excluded in a standard policy. Earthquake coverage can be added for an additional premium while a separate flood policy is necessary to obtain flood protection.

Types of coverages

The four types coverage provided by a homeowners policy are:

• Structural — Covers damage to your home or dwelling.
• Personal Belongings — Covers damage to items in or on your home or dwelling.
• Liability Protection — Covers your legal responsibility for injuries or damage to other people or property.
• Additional Living Expenses — Covers costs for temporary housing, meals, etc., while your home is being restored or rebuilt.

Structural and Personal Belongings coverages are available on an actual cash value (ACV) basis or at full replacement cost. ACV coverage considers the current market value of an item based on its age and condition. So, if you purchased a television for $400 four years ago, the value today would be significantly less than it was when you purchased it. ACV coverage would depreciate the item's value to determine the current value. Full replacement cost considers the current cost to replace an item.

Your responsibilities

When was the last time that you counted the number of shoes you own, not to mention furniture, dishes, drapes or audio and video equipment? And the list goes on and on. How much is it all worth and where would you start if you had to replace it? Now is the time to make a list of major household items and possessions. Just remember that, where possible, it is wise to list the serial number, date and cost of purchase and even include the receipt if you can.

Another easy way to inventory your home is to use a video camera or take pictures of your home and its contents. As you shoot the video, talk about the items and their date and cost of purchase.

Finally, you can visit the Insurance Information Institutes’ website, knowyourstuff.org to use their free online home inventory software. This application makes creating and updating your home inventory easy and efficient. And with their free, secure online storage you will have access to your inventory anywhere, any time. Whichever method you choose, make a copy and ask a friend or family member.

You never know when a disaster may strike, but you can be prepared with an up-to-date home inventory.

Extra Coverage Doesn’t Have to Cost a Lot

We can also recommend other coverage that you may want to add to your renters insurance policy. Many people supplement their renters insurance with personal umbrella liability insurance for broader protection. And if you have special possessions such as jewelry, art, antiques, or collectibles, ask about scheduled personal property coverage that comes with no deductible when you experience a covered loss.

Coverage availability and prices may vary by company.