1. What are some of the benefits of using American Home Insurance Agency?
We do the shopping to find you the best coverage available, saving you the time and hassle of looking around. And since we already know the details of your new home, you won’t be burdened with the complicated application-gathering process. You’ll also get the most competitive rates on everything from home insurance to automobile and life insurance. Plus, you might be eligible for multi-policy discounts by using AHI.

2. What is homeowners insurance and who should buy this type of coverage?
Homeowners insurance is required by the lender as one of the requirements for obtaining a mortgage. The typical homeowners insurance policy has two sections: Section I covers the property of the insured, and Section II provides personal liability coverage for the insured.

3. What is the difference between actual cash value and replacement cost?
Covered losses on a homeowners policy can be paid on either an actual cash value basis or on a replacement cost basis. When actual cash value is used the insured is entitled to the depreciated value of the damaged property. Under the replacement cost coverage, the insured is reimbursed an amount necessary to replace the article with one of similar type and quality at current prices up to the policy limit.

4. What factors should be considered when purchasing homeowners insurance?
Your home needs to be covered at the replacement cost that the company determines would be necessary to rebuild your home. If it is insured at less than 80% of the replacement cost you will be subject to a coinsurance penalty. Also, you will want to determine the amount of personal property insurance and personal liability coverage that you need. Next, you will need to decide on any additional endorsements you want to add. For example, do you need additional coverage for jewelry or do you want the earthquake endorsement?

5. What is covered by homeowners insurance?
Typical homeowners coverage insures your dwelling, other structures and contents, and may cover against losses such as:

• Fire or lightning
• Windstorm or hail
• Breakage of glass
• Explosion
• Riot or civil commotion
• Theft or vandalism
• Aircraft
• Vehicles
• Smoke

6. What can I do to lower the cost of my homeowners insurance?
There are a number of things that you can do to lower the cost of your homeowners policy. There are discounts available, and they differ for each company. Ask your American Home Insurance Marketing Consultant which discounts you may be eligible for. For example, many insurers offer a discount if you have dead bolt exterior locks on all your doors, or if your home has a security system. Another easy way to lower the cost of your homeowners policy is to raise your deductible. By taking a higher deductible you can lower your premium by as much as five to ten percent.