All insurance is definitely not created equal. The least costly homeowners insurance will likely give you the least amount of coverage, and vice versa.
In the U.S. there are eight forms of homeowners insurance that have become standardized in the industry; they range in name from HO-1 through HO-8 and offer various levels of protection depending on the needs of the homeowner, and the type of residence (condos, mobile/manufactured homes and rentals all have their own policies).
There are essentially three levels of coverage:
Actual cash value – This value covers the house plus the value of your belongings after deducting depreciation (i.e., how much the items are currently worth, not how much you paid for them).
Replacement cost – This is the actual cash value without the deduction for depreciation, so you would be able to repair or rebuild your home up to the original value.
Guaranteed (or extended) replacement cost/value – The most comprehensive, this inflation-buffer pays for whatever it costs to repair or build your home – even if it's more than your policy limit. Certain insurers offer extended replacement, meaning it offers more coverage than you purchased, but there is a ceiling; typically, it is 20–25% higher than the limit.
Talk to us anytime, ask as many questions you feel need answers before you sign anywhere.
Come in or call to discuss your homeowners or renters insurance needs.
Stark Agency Insurance
91 Main St, Chester, CT 06412
Monday through Friday
Available 8:30am - 5:00pm
Closed Sat. & Sun.