Home Insurance in Michigan
Buying Home Insurance for the First Time?
The experienced staff at The Ryan Insurance Agency are happy to walk you through all of your available options while you are shopping your home insurance We enjoy working with first-time homebuyers as well as seasoned insurance consumers. We have been servicing Michigan residents with their homeowners’ insurance needs for over thirteen years. Our team of trained professionals will do their best to explain coverages in easy to understand terms that will help you decide which home insurance policy you need to best protect your home and personal property.
Already a homeowner?
When was the last time you reviewed your home insurance? The majority of homeowner’s purchase home insurance as a condition of their home loan and may never compare their insurance with other carriers. It is especially important to review your home insurance when you plan to make renovations to your home, acquire new personal property, even if you have added a new pet member to your family. The Ryan Insurance has over 13 years of experience, and we can help explain the difference policies available to you.
Type of Home Insurance Policies The main types of homeowners insurance are:
Broad (HO-2) covers damage to the dwelling and possessions from specific perils listed in the policy such as explosion, fire, lightning, windstorm, hail, riot, civil commotions, theft, vandalism, falling objects, smoke, and damage from a vehicle or aircraft. “Broad” form policies are also known as “named peril” policies.
All Risk (HO-3) is the most common type of homeowners policy. The dwelling is covered against all risks or perils except those specifically excluded in the policy. The home’s contents are generally covered against named perils.
All Risk (HO-5) Is also where the Dwelling is covered against “All Risks” or perils except those specifically excluded in the policy, but the homes contents are also covered against all perils as well.
There are Replacement Cost and Actual Cash Value settlement options in today’s products, it pays to know the difference.
Replacement Cost is the cost to replace, repair or rebuild your home to its original condition with materials of the same kind and quality if it is damaged or destroyed. For example, a hardwood floor would be repaired or replaced with hardwood rather than a laminate or other material. Replacement cost coverage pays the full cost of replacing your property, minus your deductible, and up to your policy’s dollar limit. A standard homeowners policy contains a limit on the replacement value. If your limit is less than what it would take to rebuild your home at current construction material and labor costs, you may want to increase your policy limit.
Actual Cash Value is the replacement cost of the property at the time of loss minus depreciation. This means the insurance company will subtract an amount for depreciation from the value of your possessions before paying your claim. For example, actual cash value on a 10-year-old television may only be $50. Replacement cost is what it would cost to replace it with a similar model today, which would be substantially more than $50. Replacement cost minus depreciation equals actual cash value.
Deductible — The amount you are responsible to pay for a loss before any payment is due from the insurance company. Generally, the higher the deductible the lower the premium.