Homeowners Insurance explained

Understanding your Homeowner policy

T20181024 200158764 iOS Copyhere are 6 basic policy types

Common Policy Types

  • HO-3, Homeowner
  • H0-4, Renters
  • H0-5, Homeowner (aka HO-3 + 15)
  • HO-6, Condominium
  • DP1 or DWG1 or Dwelling 1
  • DP3 or DWG3 or Dwelling 3

 

For the purposes of this video we are focusing on the HO-3 since

it is the most common.

Homeowner Overview

The homeowner’s policy is a package policy in which it will include 6

basic parts. We will talk generally about the what is included in each of

these parts.

Parts:

  • Coverage A : Dwelling
  • Coverage B: Other Structures
  • Coverage C: Personal Property
  • Coverage D: Loss of Use
  • Coverage E: Liability
  • Coverage F: Medical Payments

Lets dig a little deeper

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Coverage A: Dwelling

  • This is coverage on your home itself. This is based on the

Replacement Cost of that home. Replacement Cost is the cost to

rebuild the home from the ground up.

We use this value because is a loss occurs, we need to have a

predetermined idea of the cost to repair or rebuild and not

necessarily the cost to re-buy since market and construction

costs can vary so much.

Coverage is subject to a deductible. Most of our policies have a

flat dollar deductible such as $1,000 that applies to all property

related losses.

  • Please note: many of our competitors will have a separate

percentage deductible that is much higher that applies to wind

or hail. A 2% deductible on wind on a home with a replacement

cost of $250,000 equates to $5,000 deductible on any wind

related claims, such as roof damage. You do not have to settle

for this. There are better options out there that we can offer for

probably no additional premium.

  • The Dwelling limit is used to calculate the other coverage parts

other than Liability and Medical Payments.

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Coverage B: Other Structures

  • This is coverage for detached structures such as sheds, pools,

fences, ect.

  • The coverage amount is automatically calculated at 10% of your

dwelling limit. So if you have $250,000 on your home, then you

will have $25,000 on your other structures automatically.

  • This limit can be adjusted up or down with most carriers.
  •  It is subject to a deductilbe

 

Coverage C: Personal Property

  • This is coverage for your belongings. Think moveable items such as furniture,

clothing, food, electronics, computers, jewelry, ect.

  • The automatic coverage limit is 50% of your dwelling coverage. This amount can

be changed.

  • Typically, this coverage is based on Actual Cash Value. We sometimes say that

the “evaluation basis” is Actual Cash Value. You need to watch out for this one. If

your Personal Property is insured at Actual Cash Value (ACV) then any claims for

personal property will be depreciate for age and wear and tear. Potentially this

could significantly reduce a claim payment. Typically you do not have to settle for

this option. Usually we can remedy this prior to a claim easily and inexpensively.

  • All policies have internal lower limits for items such as: jewelry, computers,

electronics, guns, collectibles, ect.

Coverage D: Loss of Use

  • This is coverage for additional living expense from being

displaced from your home due to a covered loss.

  • The coverage limit is 20%, it can be increase, and carries no

deductible.

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Coverage E: Liability

  • This is coverage for bodily injury or property damage that you

are legally liable for.

  • Coverage limits usually start at $100,000 and you can typically

select up to $500,000.

  • There is no deductible.
  • You can purchase higher liability limits by purchasing an

Umbrella Policy. The cost is usually minimal for these policies

and will provide higher limits to other polices such as your auto

liability policy.

Coverage F: Medical Payments

  • Coverage for medical bills for people injured at your location

regardless of legal liability.

  • This is a “no-fault” coverage.
  • Typical limits are $1.000 to $10,000
  • There is no deductible.

Standard Exclusion

  • Flood
  • Typically purchased as a stand alone policy.
  • Policy limits typically cap out at $250,000 on your home and

$100,000 on your personal property.

  • In some areas Excess Flood policies can be purchased to provide

higher limits.

  • Most flood damage claims are a result of excessive rain.
  • Earth Quake
  • Can usually be added by endorsement

Common Insurance Terms

  • Replacement Cost
  • The cost to rebuild or replace with like and kind at today’s cost. This

does not apply depreciation to the evaluation.

  • Actual Cash Value
  • Replacement cost minus depreciation for wear and tear. This is less

desirable than replacement cost.

  • Open Perils
  • This refers to the list of perils or types of claims a policy will insure

against. Open Perils or All Risk means it is covered unless there is a

specific exclusion that limits coverage. Typical exclusions are meant to

limit coverage for maintenance, wear and tear, and intentional acts.

Named Perils

  • This also refers to the perils of a policy. In this case there is a specific

list of perils that are insured against.

Get A Quote

REED INSURANCE

Home - Auto - Business

Call / text 318-336-5202

info@reedinsla.com

 

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Full Coverage Auto Insurance explained

auto insMississippi folks the definition of full coverage auto insurance can vary from agency to agency, state to state, and person to person.  The simple truth is, there is no hard and fast definition or rule to what “Full Coverage” means.

Some define full coverage auto insurance as the minimum required to legally drive in the state, while others refer to minimum coverage as liability insurance only.  Some think of “Full Coverage” auto insurance as including ALL coverage that is available from towing and Uninsured Motorist to customizations and GAP.  

In most cases, most people, “Full Coverage” auto insurance is defined as a policy having both liability and physical damage coverage.  In this case, full coverage auto insurance will include both collision and comprehensive coverage in addition to auto liability insurance.

Collision auto insurance will cover the costs if your vehicle is damaged by collision with another object or if you roll the car over.  Comprehensive auto insurance covers the cost of your vehicle if it is vandalized or stolen.  It also covers the cost of replacing glass that is broken on your vehicle. Comprehensive insurance will also cover the costs of repairing your car if it is damaged by fire, flood, or animals.  Of course, you are still responsible for paying your deductible.  Therefore, the amount of money you receive will be lessened by the amount of your deductible. 

So, when reviewing your policy or shopping for new coverage, make sure you are asking for what you really want.  

For more information and a better understanding of coverage, come by, call or email us.

Thanks,
Reed Insurance

Learn more about Auto Insurance Options

Auto Insurance Options for McComb, MS

What coverages are available for Mccomb, MS residents in an auto insurance policy?

You have many coverage options with your auto insurance policy. Each coverage is priced separately and each are optional and must be requested by you.

Liability
This auto insurance coverage applies to injuries and damages that you or family members listed on the policy cause to someone else. You and family members listed on the policy are also covered when driving someone else’s car with their permission. It’s very important to have enough liability insurance, because if you are involved in a serious accident, you may be sued for a large sum of money. Definitely consider buying more than the state-required minimum to protect assets such as your home and savings.
Medical Payments
This auto insurance coverage pays for the treatment of injuries to the driver and passengers of the policyholder's car. At its broadest, PIP can cover medical payments, lost wages and the cost of replacing services normally performed by someone injured in an auto accident. It may also cover funeral costs.
Collision
This car insurance coverage pays for damage to your car resulting from a collision with another car, object or as a result of flipping over. It also covers damage caused by potholes. Collision coverage is generally sold with a deductible of $250 to $2,5000—the higher your deductible, the lower your premium. Even if you are at fault for the accident, your collision coverage will reimburse you for the costs of repairing your car, minus the deductible. If you're not at fault, your car insurance company may try to recover the amount they paid you from the other driver’s car insurance company. If they are successful, you'll also be reimbursed for the deductible.
Comprehensive
This auto insurance coverage reimburses you for loss due to theft or damage caused by something other than a collision with another car or object, such as fire, falling objects, missiles, explosion, earthquake, windstorm, hail, flood, vandalism, riot, or contact with animals such as birds or deer.
Comprehensive auto insurance is usually sold with a $100 to $500 deductible, though you may want to opt for a higher deductible as a way of lowering your auto insurance premium.
Comprehensive auto insurance will also reimburse you if your windshield is cracked or shattered. Some companies offer glass coverage without a deductible for windshield repairs but not replacements.
States do not require that you purchase collision or comprehensive coverage, but if you have a car loan, your lender may insist you carry it until your loan is paid off.
Uninsured and Underinsured Motorist Coverage
This car insurance coverage will reimburse you, a member of your family, or a designated driver if one of you is hit by an uninsured or hit-and-run driver.
Underinsured motorist car insurance coverage comes into play when an at-fault driver has insufficient insurance to pay for your total loss. This coverage will also protect you if you are hit as a pedestrian.

Other optional auto insurance coverages can be purchased for an additional premium. They include but are not limited to: towing and labor, rental reimbursement, additional installed equipment coverage, and GAP coverage.

Get A Quote 

 

  • company's contact info.

Thanks,
Reed Insurance

 

PS.  No matter where you live in Mississippi we can help you get the best auto insurance for the best price. So, as long as you are in one of these towns, we can help you!

Jackson, Gulfport, Southaven, Hattiesburg, Biloxi, Meridian, Tupelo, Olive Branch, Greenville, Horn Lake, Pearl, Madison, Clinton, Starkville, Ridgeland, Vicksburg, Columbus, Brandon, Pascagoula, Oxford, Laurel, Gautier, Ocean Springs, Clarksdale, Greenwood, Long Beach, Hernando, Natchez, Corinth, Canton, Moss Point, Grenada, McComb, Brookhaven, Cleveland, Byram, Bay St. Louis, Yazoo City, West Point, D'Iberville, Picayune, Petal, Indianola, Booneville, New Albany, Flowood, Gulf Hills, Diamondhead, Senatobia, St. Martin, Holly Springs, Batesville, Philadelphia, Kosciusko, Amory, Richland, Latimer, West Hattiesburg, Waveland, Louisville, Columbia, Vancleave, Pontotoc, Forest, Gulf Park Estates, Aberdeen, Ripley, Pass Christian, Saltillo, Waynesboro, Crystal Springs, Carthage, Winona, Ellisville, Wiggins, Magee, University, Florence, Beechwood, Leland, Fulton, Pearl River, Hazlehurst, Escatawpa, Mississippi State, Houston, New Hope, Tutwiler, Morton, Newton, Baldwyn, Water Valley, Verona, Lucedale, Iuka, Nicholson, Poplarville, Ruleville, Macon, Okolona, Hollandale, Collins, Arnold Line, Durant, Guntown, Mendenhall, Magnolia, Purvis, Moorhead, Quitman, Lumberton, Farmington, Lyman, Raymond, Shelby, Eupora, Lynchburg, Belzoni, Charleston, Rolling Fork, Belmont, Tchula, Itta Bena, Union, Nettleton, Walnut Grove, Wesson, Bruce, Flora, Shaw, Decatur, Drew, Morgantown, Rosedale, Shannon, Calhoun City, Bridgetown, Bay Springs, Kiln, Sumrall, Collinsville, Summit, Sardis, Lexington, Marks, Fayette, Coldwater, Marion, Centreville, Tylertown, Hurley, Tunica Resorts, Monticello, Lambert, Pearlington, Mound Bayou, Ackerman, Columbus AFB, Port Gibson, Raleigh, Nellieburg, Glendale, Robinhood, Hillsboro, Pelahatchie, Sharon, Goodman, Taylorsville, Mississippi Valley State University, Vardaman, Byhalia, Walls, Como, Jonestown, Saucier, Brooksville, Conehatta, Elliott, Plantersville, Mantachie, Friars Point and Hide-A-Way Lake, Terry, North Tunica, De Kalb, Duck Hill, Sunflower, Pickens, Rawls Springs, Cleary, Richton, Kearney Park, Stonewall, Metcalfe, Edwards, Bude, Caledonia, Toomsuba, Prentiss, Tunica and Derma, Woodville, Helena, DeLisle, Mount Olive, Ecru, Inverness, Beaumont, Burnsville, White Oak, Blue Mountain, Smithville, Gloster, Leakesville, Maben, Big Point, Crenshaw, Coffeeville, Utica, Wade, Polkville, Walnut, Tucker, Vaiden, Sandersville, Renova, Scooba, Alcorn State University, Liberty, Heidelberg, Crowder, Mathiston, Sherman and Anguilla, Isola, Thaxton, Cloverdale, Meridian Station, Mooreville and Redwater, New Augusta, Boyle, Kilmichael and Crawford, New Houlka, Algoma, Mayersville, Hickory Flat, State Line, Bolton, Ashland, Hamilton, Webb, Hickory, Sledge, Lauderdale, Courtland, Enterprise, Oakland and Falkner, Potts Camp, Bogue Chitto Cdp, Sidon, Myrtle, Jumpertown, Shuqualak, Bogue Chitto Cdp and Roxie, New Hamilton, Hatley, Tremont, Benoit, and Dumas, Buckatunna, Noxapater, North Carrollton, D'Lo, Weir, Gunnison and Abbeville, McLain, Meadville and Osyka, New Hebron and Artesia, Shubuta, Bentonia, Holcomb, Merigold, Duncan, Farrell, Glen, Ethel, Foxworth, Soso, Cruger, Arcola, Coahoma, Taylor, Beulah, Tishomingo, Lyon and Mize, Chunky, Beauregard, Lake, Puckett, Rienzi, Seminary, Sumner, Schlater, Silver City, Snow Lake Shores, Crosby, Clara, Cary, Standing Pine, Georgetown or any other city or town in Mississippi!

Auto Accident Tips

Damaged car (photo)Auto accidents unfortunately do happen. If you are involved in one, here are a few tips.

  • Stay calm so you can make sure everyone is ok and then call the necessary emergency services to tend to the accident.
  • Next, try to get the name, driver’s license number, and insurance information from the driver of the other vehicle, as well as contact information from passengers or anyone else involved in the accident, including witnesses.
  • It’s best to not discus fault or liability with the driver of the other auto or anyone else at the scene of the accident. Best rule of thumb is to just stick with what happened and not anyone’s opinion of what happened. As Joe Friday from Dragnet would say, "All we want are the facts, just the facts, ma’am."
  • Be sure to report the accident as soon as you are able to your insurance company. You can report to our office or find your company's contact info.

Thanks,
Reed Insurance

 

Get A Quote

 

PS.  No matter where you live in Mississippi we can help you get the best auto insurance for the best price. So, as long as you are in one of these towns, we can help you!

Jackson, Gulfport, Southaven, Hattiesburg, Biloxi, Meridian, Tupelo, Olive Branch, Greenville, Horn Lake, Pearl, Madison, Clinton, Starkville, Ridgeland, Vicksburg, Columbus, Brandon, Pascagoula, Oxford, Laurel, Gautier, Ocean Springs, Clarksdale, Greenwood, Long Beach, Hernando, Natchez, Corinth, Canton, Moss Point, Grenada, McComb, Brookhaven, Cleveland, Byram, Bay St. Louis, Yazoo City, West Point, D'Iberville, Picayune, Petal, Indianola, Booneville, New Albany, Flowood, Gulf Hills, Diamondhead, Senatobia, St. Martin, Holly Springs, Batesville, Philadelphia, Kosciusko, Amory, Richland, Latimer, West Hattiesburg, Waveland, Louisville, Columbia, Vancleave, Pontotoc, Forest, Gulf Park Estates, Aberdeen, Ripley, Pass Christian, Saltillo, Waynesboro, Crystal Springs, Carthage, Winona, Ellisville, Wiggins, Magee, University, Florence, Beechwood, Leland, Fulton, Pearl River, Hazlehurst, Escatawpa, Mississippi State, Houston, New Hope, Tutwiler, Morton, Newton, Baldwyn, Water Valley, Verona, Lucedale, Iuka, Nicholson, Poplarville, Ruleville, Macon, Okolona, Hollandale, Collins, Arnold Line, Durant, Guntown, Mendenhall, Magnolia, Purvis, Moorhead, Quitman, Lumberton, Farmington, Lyman, Raymond, Shelby, Eupora, Lynchburg, Belzoni, Charleston, Rolling Fork, Belmont, Tchula, Itta Bena, Union, Nettleton, Walnut Grove, Wesson, Bruce, Flora, Shaw, Decatur, Drew, Morgantown, Rosedale, Shannon, Calhoun City, Bridgetown, Bay Springs, Kiln, Sumrall, Collinsville, Summit, Sardis, Lexington, Marks, Fayette, Coldwater, Marion, Centreville, Tylertown, Hurley, Tunica Resorts, Monticello, Lambert, Pearlington, Mound Bayou, Ackerman, Columbus AFB, Port Gibson, Raleigh, Nellieburg, Glendale, Robinhood, Hillsboro, Pelahatchie, Sharon, Goodman, Taylorsville, Mississippi Valley State University, Vardaman, Byhalia, Walls, Como, Jonestown, Saucier, Brooksville, Conehatta, Elliott, Plantersville, Mantachie, Friars Point and Hide-A-Way Lake, Terry, North Tunica, De Kalb, Duck Hill, Sunflower, Pickens, Rawls Springs, Cleary, Richton, Kearney Park, Stonewall, Metcalfe, Edwards, Bude, Caledonia, Toomsuba, Prentiss, Tunica and Derma, Woodville, Helena, DeLisle, Mount Olive, Ecru, Inverness, Beaumont, Burnsville, White Oak, Blue Mountain, Smithville, Gloster, Leakesville, Maben, Big Point, Crenshaw, Coffeeville, Utica, Wade, Polkville, Walnut, Tucker, Vaiden, Sandersville, Renova, Scooba, Alcorn State University, Liberty, Heidelberg, Crowder, Mathiston, Sherman and Anguilla, Isola, Thaxton, Cloverdale, Meridian Station, Mooreville and Redwater, New Augusta, Boyle, Kilmichael and Crawford, New Houlka, Algoma, Mayersville, Hickory Flat, State Line, Bolton, Ashland, Hamilton, Webb, Hickory, Sledge, Lauderdale, Courtland, Enterprise, Oakland and Falkner, Potts Camp, Bogue Chitto Cdp, Sidon, Myrtle, Jumpertown, Shuqualak, Bogue Chitto Cdp and Roxie, New Hamilton, Hatley, Tremont, Benoit, and Dumas, Buckatunna, Noxapater, North Carrollton, D'Lo, Weir, Gunnison and Abbeville, McLain, Meadville and Osyka, New Hebron and Artesia, Shubuta, Bentonia, Holcomb, Merigold, Duncan, Farrell, Glen, Ethel, Foxworth, Soso, Cruger, Arcola, Coahoma, Taylor, Beulah, Tishomingo, Lyon and Mize, Chunky, Beauregard, Lake, Puckett, Rienzi, Seminary, Sumner, Schlater, Silver City, Snow Lake Shores, Crosby, Clara, Cary, Standing Pine, Georgetown or any other city or town in Mississippi!

Auto Insurance Coverages for Natchez, MS

 

 We offer many options to our friends in Natchez, MS for Auto Insurance.  Here are a list of some of the coverge options available

There are many coverages to choose from when it comes to Auto Inurance.  Here is a little info that may help you out.

1. Liability This coverage applies to injuries and damages that you or family members listed on the policy cause to someone else. You and family members listed on the policy are also covered when driving someone else’s car with their permission. It’s very important to have enough liability insurance, because if you are involved in a serious accident, you may be sued for a large sum of money. Definitely consider buying more than the state-required minimum to protect assets such as your home and savings.

1. Liability This coverage applies to injuries and damages that you or family members listed on the policy cause to someone else. You and family members listed on the policy are also covered when driving someone else’s car with their permission. It’s very important to have enough liability insurance, because if you are involved in a serious accident, you may be sued for a large sum of money. Definitely consider buying more than the state-required minimum to protect assets such as your home and savings.

2. Medical Payments This coverage pays for the treatment of injuries to the driver and passengers of the policyholder's car. At its broadest, PIP can cover medical payments, lost wages and the cost of replacing services normally performed by someone injured in an auto accident. It may also cover funeral costs.

3. Collision This coverage pays for damage to your car resulting from a collision with another car, object or as a result of flipping over. It also covers damage caused by potholes. Collision coverage is generally sold with a deductible of $250 to $2,5000—the higher your deductible, the lower your premium. Even if you are at fault for the accident, your collision coverage will reimburse you for the costs of repairing your car, minus the deductible. If you're not at fault, your insurance company may try to recover the amount they paid you from the other driver’s insurance company. If they are successful, you'll also be reimbursed for the deductible.

4. Comprehensive This coverage reimburses you for loss due to theft or damage caused by something other than a collision with another car or object, such as fire, falling objects, missiles, explosion, earthquake, windstorm, hail, flood, vandalism, riot, or contact with animals such as birds or deer. Comprehensive insurance is usually sold with a $100 to $500 deductible, though you may want to opt for a higher deductible as a way of lowering your premium. Comprehensive insurance will also reimburse you if your windshield is cracked or shattered. Some companies offer glass coverage without a deductible for windshield repairs but not replacements. States do not require that you purchase collision or comprehensive coverage, but if you have a car loan, your lender may insist you carry it until your loan is paid off.

5. Uninsured and Underinsured Motorist Coverage This coverage will reimburse you, a member of your family, or a designated driver if one of you is hit by an uninsured or hit-and-run driver. Underinsured motorist coverage comes into play when an at-fault driver has insufficient insurance to pay for your total loss. This coverage will also protect you if you are hit as a pedestrian.

6. Other optional coverages can be purchased for an additional premium. They include but are not limited to: towing and labor, rental reimbursement, additional installed equipment coverage, and GAP coverage.

 

Get A Quote