Homeowner's insurance provides protection and restores you to the financial position you were in before the loss occurred. Also known as the principle of indemnity. Homeowner's insurance is sold as a package policy. This means that it will cover both damage to your property and your liability or legal responsibility for any injuries and property damage you or members of your family cause to other people. Damage that is most significant is usually caused by earthquakes, floods, and poor maintenance. You must buy two separate policies for earthquake and flood coverage. Maintenance related problems are the homeowner’s responsibility.

There is always a threat of property loss resulting from theft, fire or other causes. Keeping an accurate inventory showing proof of ownership at the time of the loss can make a claim settlement easier and faster. Although the inventory may take a while to complete, the time and frustration it may save you in the long run will more than make up for it!

The first step that will help you determine the right coverage is estimating the replacement cost of your home. The second step is selecting the coverage amount that best fits your needs; mypolicyspace.com recommends that you purchase an amount of coverage that is equal to the estimated replacement cost. Determining that cost will ultimately determine which policy options are available to you. Since it is virtually impossible to predict today what the exact replacement cost of your home will be in the future it is always important to have enough coverage to account for appreciation in years to come.

"Replacement cost" is the amount needed to repair the damage or to rebuild the home to its pre-loss condition. For insurance purposes, the replacement cost of a home is NOT the market value of the home, its purchase price or the outstanding amount of any mortgage loan. It does not include the value of the land, but is the cost of rebuilding your home.

Auto insurance was created to protect you against a financial loss you may incur from an accident. This agreement is established by a contract you and your insurance company have. You agree to pay the premium and the insurance company agrees to pay your losses as defined in your policy.

Auto insurance provides liability, medical and property coverage.

• The liability coverage will pay for your legal responsibility to others for property damage or bodily injury.
• Medical coverage will pay for the cost of treatment of incurred injuries.
• Property coverage will cover theft to or damage of your car.

What is the difference between comprehensive and collision?

Collision coverage is when you have a collision with something like another automobile. Comprehensive coverage is when a loss occurs from anything else other than a collision such as fire, theft or collision with a deer.

If my teenage son/daughter just received their learner’s permit, do I need to add them onto my auto policy?

Some insurers add teen drivers when have received a valid driver’s license, while other companies want you to add them immediately. Let mypolicyspace.com help find out which applies to you!

If I was in an accident that wasn’t my fault, should I still report it to my insurance company?

YES! Even though you may not have been at fault an insurance company needs to be notified so they may conduct an investigation. This is done so that your interest stays protected in case legal problems were to arise later.

I’ve heard I should have 100/300/50 coverage. What does that mean?

The first two numbers 100 and 300 represent “bodily injury” liability. It means that if you are in an at fault accident, your policy will pay up to $100,000 per person, but no more than $300,000 per accident for bodily injury that you may cause to others. The last figure, 50 is for property damage liability. This means your insurance company will pay up to $50,000 for damage you may have caused to the property of others in an accident.

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