By: Lisa Broadbent-DiOssi

When was the last time you reviewed your homeowner’s policy with your agent? Now would be the time to do so, since Delaware enacted a new law on January 2nd, 2008. The new law forbids insurance companies from raising your homeowner’s insurance premium based on credit scoring for existing customers. However, the law also states that you may have your premium reduced at renewal time if your credit score has improved. Basically, this means you should contact your agent to see if your premium could be reduced – remember, if your credit has gotten worse the company cannot raise your premium.

Credit scoring can still be used when purchasing a new policy. Once you’ve been in your new home for awhile, paid your bills on time, improved your credit score, it would be prudent to check at your next renewal to see if you would qualify for a better rate. Most insurance companies do not recheck your credit at renewal and some not at all, so it is up to you to call your agent to ensure you’re getting the best rate possible. For more information, a guide to Delaware’s new law is available online at http://delawareinsurance.gov/credit.

While you have your agent on the phone, don’t forget to review all of your coverage’s – it’s better to become familiar with the definitions before you have a claim and find out your property was not adequately covered.

Homeowners Insurance is designed to provide protection in case of a major loss. By claiming small losses on your policy or even just calling in a claim, the insurance company has the right to surcharge your premium (increase your rates), or in some states, cancel your policy. So be very careful in what you claim, and make sure you contact your agent for guidance to see if the claim is even covered before calling in the claim.

Since insurance companies vary in the coverages that are included in the package policy, make sure you check with your insurance company for a better understanding of the added coverages. In general most policies include the following:

• Dwelling Coverage: This is the amount of insurance on the actual structure. The value of the dwelling should be insured for replacement cost value. This is the figure it will actually cost to rebuild the home with the same building materials. Replacement cost should not be confused with market value. Market value is the actual price obtained by the seller, while replacement cost is what a contractor would be paid to build the exact same house. Also, replacement cost coverage is an optional coverage that should be endorsed onto the dwelling coverage. For example, if the home has plaster walls, replacement cost coverage would replace the walls with plaster if damaged due to a covered peril.
• Other Structures: This coverage includes all structures that are not attached to the dwelling, including a detached garage. Make sure you have enough coverage here if there are multiple detached structures, or structures that are of substantial value.
• Contents Coverage: This is your personal property that isn’t attached to the dwelling. Here is where you want to make sure that replacement cost coverage is also endorsed. Replacement cost would give you the actual value it would cost to replace the contents. The catch here is that you have to replace the items. Another consideration is the value which to insure your contents. Typically the package homeowners’ policy insures the contents for a percentage of the dwelling amount. For example, if the dwelling amount were $100,000, the automatic contents amount would be 70% or $70,000. Just make sure this figure is accurate.
• Loss of Use: Coverage for additional living expenses when you can’t use your house due to a covered loss. For example, if the house burns down one would need toiletries, food, temporary housing and the like until the home the rebuilt. This coverage would provide those additional living expenses.
• Personal Liability Coverage: Personal Liability protects against claims you’re legally obligated to pay. This includes liability that arises out of bodily injury, sickness, disease and death of others or destruction of others’ property for which you are responsible. Make sure you are adequately covered here. Liability coverage should be enough to protect all your assets. You might want to consider an umbrella policy.
• Medical Expenses: Protects against injury to others including medical expenses, ambulance charges, hospital expenses and cost of a registered nurse.

Other optional coverages are also available, such as ordinance or law, which rebuilds your home according to the current building codes, water backup, which pays for sewer pipes backing up into your home or sump pump failure and identity theft which not only pays for your loss but helps you restore your identity. These optional coverages are only offered by Nationwide Insurance and offer an added valve for less than any other insurance carrier. In other words, Broadbent Insurance offers you an outstanding Homeowners Insurance policy in the industry for a very competitive price.

Consider your high value items such as jewelry, watches, furs, guns, tools, cameras, camcorders, silverware, gold, pewter, money, computers and business property. These items might need a special rider if the value is higher than the allotted amount on the policy. The rider would provide special all risk coverage. This would extend coverage to include all the special perils plus mysterious disappearance.

Homeowners insurance needs to make you feel secure as walking through your front door. Evaluate your assets, personal property, and dwelling so you know what coverage are necessary for you. Picking the right insurance company and agent will also give you added confidence.

Lisa Broadbent-DiOssi recently celebrated her 20th year with Nationwide Insurance and Financial Services as an agency owner. She is currently the President of the National Association of Insurance of Delaware (NAIFA – DE) and Past President of the National Association of Insurance Financial Advisors of New Castle County (NAIFA – NCC) and current moderator for Leadership In Life Institute (LILI) for the State of Delaware.

The Broadbent name has proudly served New Castle County through 3 generations of insurance and financial needs and will be here for you for many more to come.

There are two locations to better serve you: 20 Polly Drummond Hill Rd, Newark, DE 19711 or 715 Greenbank Rd, Wilmington, DE 19808 – both just off the Kirkwood Highway.