Oregon Home Insurance FAQ
Below are frequently asked questions that I receive from homeowners.
From an insurance perspective when looking at a home insurance policy, the goal of the policy is to make sure you have adequate coverage to replace your home as well as any attached and detached structures, were there to be a disaster. From the insurance company perspective all they care about is what would it cost to rebuild your home, from the ground back up. This is considered to be the “replacement cost” of your home.
With a home appraisal or the values you see listed online, this value includes the estimated cost to rebuild the structure and the value of any land that your home is located on. Many times the property your home is worth more than the insurance replacement cost value of the home itself.
The insurance replacement cost of the home is calculated using replacement cost estimators which calculates the current cost to rebuild homes. Some of the key considerations in the calculation includes the number of stories of the home, the square footage, the number of bathrooms, the quality and materials used in its construction. These databases are updated quarterly and address changes in material prices, labor and other costs.
In summary the insurance replacement cost value of your home does not include the appraised value of the land because the appraised value includes the estimated cost to rebuild the structure and the value of any land that your home is located on. Many times the property your home is on may actually be worth the same amount, if not slightly more, than the insurance replacement cost value of the home itself.
In summary the insurance replacement cost value of your home does not include the appraised value of the land.
Money & related items
Securities, accounts, deeds, and related items
Watercraft, including their trailers, furnishings, equipment, and engines
Jewelry, furs, and related items
Firearms and related items
Silverware and related items such as China and Crystal
Business property on the premises
Business property away from the premises
Electronic apparatus while on a motor vehicle
Personal property that you would want to consider to schedule would be:
Jewelry, furs and leathers
Firearms and related items
Antiques and collectibles
Unusual collections, hobby materials or tools
If you find items that require more coverage than your policy provides, you can obtain coverage by increasing your property limit by scheduling items separately through the purchase of an endorsement. To get more information on the benefits of scheduling property click here.
Tip Additional liability coverage is called an umbrella policy and is not terribly expensive. Learn more about umbrella policies by clicking here.
As an insurance broker I help individuals throughout Oregon and the Pacific Northwest manage risk.