8 Homeowners Insurance Coverages You Need

When it comes to homeowners insurance, not all policies are created equal. And that’s important to remember when it comes to protecting what could very well be your
biggest asset.

Check out the list below, which shows some major “must haves” in homeowners insurance.

1. The right limits. One thing that people commonly gravitate to when they hear “value of the home” is what they paid for the home when they bought it. However, your insurance is not for buying a home; it’s for rebuilding your home in case something were to happen. In the event of a total loss, you’ll need enough insurance coverage for a full rebuild of your home. Another major change in value results in home improvements done over time. We recommend that any home improvement over $5,000 be reported to your agent.Factoring in the cost of a rebuild means you need to account for many external factors, like materials and labor, which is why we encourage you to speak with your local agent to ensure your home insurance has the proper limits.
2. Guaranteed replacement cost.¹ When you have guaranteed replacement costs, you can rest easy knowing that you can rebuild your home after a major loss. This coverage takes away the stress of factoring in external pressures such as drastically changing materials and labor costs. You gain the ultimate peace of mind knowing that if the worst were to happen and a covered loss happens, your home will be rebuilt back to what it was.Keep in mind that Guaranteed Replacement Cost isn’t available in all states. In North Carolina, ask about Enhanced Replacement Cost. For specific questions or a personalized estimate for your home, talk to a local insurance professional like one of our local insurance agents.
3. Enough liability coverage. Your homeowner’s liability coverage protects your assets in the event someone gets hurt on your property. It also offers coverage for some incidents that happen away from your home (for instance, if you run your bike into someone). Unfortunately, lawsuits aren’t as uncommon as you might think, and they have the potential to wipe out many people’s savings. That’s why most people will want to have at least $300,000 of liability coverage. You might also consider a Personal Umbrella Insurance policy, which adds an extra $1 to $5 million of coverage to your homeowners as well as your auto insurance.²
4. Additional living expenses. If your home was a total loss or became uninhabitable after a covered loss, do you know where you would stay and how you would pay for the extra expense? Additional Living Expenses offers coverage for your reasonable additional expenses, such as needing to reside somewhere else while the home is repaired.
5. Endorsements that let you customize your coverage. Everyone’s risk factors are different, which means your home policy should be able to flex to fit your exact needs and budget. We offer unique endorsements that let you do just that! Extended Water is a common endorsement that protects you from backup of sewers, drains (separate Water Backup endorsement required in North Carolina) or floods.³ You can also add an additional cushion of protection for your major appliances and home systems (when you also have Sewer or Drain Backup coverage) with Equipment Breakdown Coverage.⁴ Our range of endorsements available is extensive; make sure to speak with your agent to ensure you have all you need to ensure your policy fits into your lifestyle.
6. An affordable deductible. Many homeowners recovering from a disaster such as a hurricane get sticker shock when they learn their deductible isn’t a dollar amount that they chose but rather a percentage of the limit on their policy. These named-storm percentage deductibles are almost always higher than dollar-amount deductibles—and sometimes significantly so. Unlike many carriers, our named-storm deductible is a specific dollar amount rather than a percentage of your homeowner’s limit. What’s more, you also have the option of choosing different dollar-amount deductibles for different causes of loss.
7. The backing of a financially sound company. If you have a claim, you want the backing of a company that can pay it. One way to find out if your company is financially sound is to check the rankings from A.M. Best that are released each year.
8. A knowledgeable local insurance agent. It’s no secret that insurance can be rather complicated and frustrating to understand. To simplify things and get trusted advice, it’s a good idea to work with an insurance agent you trust. A local insurance agent is an expert in your community you can count on to help you get the right coverage at the right price.

ERIE® insurance products and services are provided by one or more of the following insurers: Erie Insurance Exchange, Erie Insurance Company, Erie Insurance Property & Casualty Company, Flagship City Insurance Company and Erie Family Life Insurance Company (home offices: Erie, Pennsylvania) or Erie Insurance Company of New York (home office: Rochester, New York).  The companies within the Erie Insurance Group are not licensed to operate in all states. Refer to the company licensure and states of operation information.

The insurance products and rates, if applicable, described in this blog are in effect as of January 2024 and may be changed at any time. 

Insurance products are subject to terms, conditions and exclusions not described in this blog. The policy contains the specific details of the coverages, terms, conditions and exclusions. 

The insurance products and services described in this blog are not offered in all states.  ERIE life insurance and annuity products are not available in New York.  ERIE Medicare supplement products are not available in the District of Columbia or New York.  ERIE long term care products are not available in the District of Columbia and New York. 

Eligibility will be determined at the time of application based upon applicable underwriting guidelines and rules in effect at that time.

Your ERIE agent can offer you practical guidance and answer questions you may have before you buy.