Selecting the Right Policy
St. Johns Customers Understand What They're Buying.
You Get What You Buy. Before you decide on a particular policy, know exactly what it will give you. Standard policies provide coverage for things like lightning, hail, explosions and theft. They don’t cover floods or earthquake. For these, you need separate policies. (Studies show that only 20% of homeowners in flood prone areas have flood insurance – even though the risk of flood is 26x the risk of fire).
Don’t Be Fooled! Insure your home for what it would cost to rebuild it, not your mortgage amount or market value. According to a study conducted by Marshall & Swift/Boeckh, as many as 75% of U.S. homeowners have insurance policies that wouldn’t cover the cost of rebuilding had a fire or storm leveled their home.
Your St. Johns insurance agent will work closely with you to determine your home’s replacement value. One way for you to get a quick estimate is to multiply the total square footage of your home by local building costs per square foot. But keep in mind, things like type of construction, improvements, special custom features, etc., aren’t reflected in a generic cost-per-square-foot estimate. Please consult with your insurance agent who will have access to resources used in calculating a home’s replacement value.
Are You Entitled to Discounts? There are a wide range of discounts you may qualify for at St. Johns. There are discounts for newer homes, homes equipped with hurricane shutters, fire and burglar alarms, as well as homes built to new Building Code standards – just to name a few. St. Johns rewards homeowners who have taken pride in their homes.
Your Belongings May Be Worth More Than You Think. Generally, homeowners policies give you coverage for your belongings that is equal to anywhere from 25% to 75% of the amount of insurance you have on your home. To decide what’s right for you, do a video or written inventory of everything you own that includes what it would cost to replace it. Consider insuring belongings on a replacement cost coverage basis. While it generally costs a little more, if you have a claim you’ll be reimbursed for what it costs to replace the item with no deduction for depreciation.
Make Sure You Are Not Underinsured. If someone is injured on your property and you’re not properly insured, it could cost you hundreds of thousands of dollars. Basic homeowners policies give you $100,000 worth of liability insurance. Increasing liability coverage to $300,000 or $500,000 is generally worth the relatively small increase in cost.
Are You Building-Code Compliant? If your home needs to be repaired or replaced, the cost of improvements needed to comply with current building codes may not be covered by a standard homeowners policy. Call a St. Johns agent to find out the latest on building codes in your area.