8 Homeowners Insurance Coverages You Need

When it comes to homeowners insurance, not all policies are created equal. And that's important to remember when it comes to protecting what could very well be your biggest asset.

Check out the list below to see some major "must haves" inhomeowners insurance.

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1. The right limits.One thing that people commonly gravitate to when they hear "value of the home" is what they paid for the home when they bought it. However, your insurance is not for buying a home, it's for rebuilding your home in case something were to happen. In the event of a total loss, you'll need enough insurance coverage for a full rebuild of your home. Another major change in value results in home improvements done over time. We recommend that any home improvement over $5,000 be reported to your agent.

Factoring in the cost of a rebuild means you need to account for a lot of external factors like materials and labor, which is why we encourage you to speak with your local agent to ensure your home insurance has the proper limits.

1. Guaranteed replacement cost.¹When you haveguaranteed replacement cost, you can rest easy knowing that you could rebuild your home after a major loss. This coverage takes away the stress of factoring in external pressures such as drastically changing materials and labor costs. You gain the ultimate peace of mind knowing that if the worst were to happen and a covered loss happens, your home will be rebuilt back to what it was.
   
   Keep in mind that Guaranteed Replacement Cost isn't available in all states. In North Carolina, ask about Enhanced Replacement Cost. For specific questions or a personalized estimate for your home, talk to a local insurance professional like anErie Insurance agent.
   
2. Enough liability coverage.Your homeowners liability coverage protects your assets in the event someone gets hurt on your property. It also offers coverage for some incidents that happen away from your home (for instance, if you run your bike into someone). Unfortunately, lawsuits aren't as uncommon as you might think, and they have the potential to wipe out many people's savings. That's why most people will want to have at least $300,000 of liability coverage. You might also consider aPersonal UmbrellaInsurance policy, which adds an extra $1 to $5 million of coverage to your homeowners as well as your auto insurance.²
   
3. Additional living expenses.If your home was a total loss or became uninhabitable after a covered loss, do you know where you would stay and how you would pay for the extra expense? Additional Living Expenses offers coverage for your reasonable additional expenses from needing to reside somewhere else while the home is repaired. Up to 12 months of Additional Living Expenses coverage is provided automatically in our standard ErieSecure Home policies. If you upgrade into the Select or PlusErieSecure Home Bundlesthat coverage is bumped up to 24 months for Additional Living Expenses.
   
4. Endorsements that let you customize your coverage.Everyone's risk factors are different, which means your home policy should be able to flex to fit your exact needs and budget. ERIE offers unique endorsements that let you do just that!Extended Wateris a common endorsement that protects you from backup of sewers, drains (separate Water Backup endorsement required in North Carolina) or floods.³You can also add an additional cushion of protection for your major appliances and home systems (when you also have Sewer or Drain Backup coverage) withEquipment Breakdown Coverage.⁴ERIE's range of endorsements available is extensive, make sure to speak with your agent to ensure you have all you need to ensure your policy fits into your lifestyle.
   
5. An affordable deductible.Many homeowners recovering from a disaster such as a hurricane get sticker shock when they learn their deductible isn't a dollar amount that they chose, but rather a percentage of the limit on their policy. These named-storm percentage deductibles are almost always higher than dollar-amount deductibles-and sometimes significantly so. Unlike many carriers, ERIE's named-storm deductible is a specific dollar amount rather than a percentage of your homeowners limit. What's more, you also have the option of choosing different dollar-amount deductibles for different causes of loss.
   
6. The backing of a financially sound company.If you have a claim, you want the backing of a company that can pay it. One way to find out if your company is financially sound is to check the rankings from A.M. Best that are released each year. In addition to earning an A+ (Superior) rating from A.M. Best ERIE is also ranked on the 2023 FORTUNE 500® list.
   
7. A knowledgeable local insurance agent.It's no secret, insurance can be rather complicated and frustrating to understand. To simplify things and get trusted advice, it's a good idea to work with an insurance agent you trust. AnErie Insurance Agentis a local insurance expert in your community you can count on to help you get the right coverage at the right price.

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Guaranteed Replacement Cost applies to the dwelling and requires home improvements over $5,000 to be reported within 90 days-not available with all policies and in all states. Coverage of costs to comply with laws or ordinances is subject to limits. Depreciation may be deducted until repair or replacement is made.

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Umbrella Liability Insurance is not available in New York, where ERIE continues to offer Personal Catastrophe Liability Insurance. The policy contains the specific details of the terms, conditions, limitations and exclusions that apply. Talk to your Agent for details.

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Extended Water coverage endorsement does not satisfy mandatory flood insurance coverage should it be required by your federally regulated lender for your home mortgage or loan. This insurance product is not affiliated with the National Flood Insurance Program. Not available in all states. Extended Water coverage endorsement is not intended to provide coverage for damage caused by leaking or wet foundations or basements, water damage caused by normal wear and tear or other maintenance related damage. Insurance products are subject to terms, conditions, exclusions, limits, sub-limits not described here.

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Equipment breakdown coverage is only included if the Select bundle includes sewer or drain backup. Coverage is capped at $50,000 per occurrence and the policy deductible applies. Claims are subject to ERIE's surcharge program.

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