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Your House is Your Castle, Defend It with Homeowners Insurance!

Posted by David Ross on Sat, Mar 03, 2012


House insurance for homeowners in Reading, PA, Lancaster, York, Philadelphia, Harrisburg, Allentown, Bethlehem, MD, NJ, NY, and beyond

The biggest and most important investment the average american family will make in a lifetime is his or her home.  The all-American dream is owning a home. Of course, choosing the right house insurance to protect that cherished home is an extemely important decision. 

Most homeowners insurance policies are similar in the types of perils that are insured.  The typical homeowners insurance policy is written under a form HO-3 "Special Form Perils" policy.  This policy typicallly insures your home against all direct perils with "named exclusions". This which means that if the cause of loss is not excluded, then the peril is covered. Standard exclusions are:



Even if most insurance companies cover the same perils, (things that can happen to your home), it doesn't mean all policies are equal.  The problem with cheap home insurance is that you often do not have a comprehensive policy, and, tragically, often this goes undiscovered until you have a claim. 


Often we see new home buyers getting house insurance quotes from companies insuring the dwelling for the purchase price.  Although your lender will be fine with insurance covering the dwelling amount provided it is at least equal to your loan amount, dwelling amount coverage will not be adequate in the event of a loss.

An Example of the Pitfalls of Underinsuring Your Home:  

Mr. & Mrs Smith just purchased their first home, an underpriced beauty in an older neighborhood.  Their real estate agent congratulates them for having achieved the American dream. They sign an agreement of sale and call the 1-800-cheap-home-insurance number they hear every night on TV.  Since they are purchasing their home for $100,000, the agent on the other end has no idea of the neighborhood or specific features of Mr. & Mrs. Smith's dream home. 

The agent quotes the Smith's a standard house insurance policy, and suggests insuring the dwelling for the amount they paid for the home ($100,000).  The bank is fine with the quote and accepts the policy because the dwelling is being insured for what the Smith's are paying for the home, which more than covers the bank loan. Settlement goes through and the Smith's feel safe and secure.

Six months later, a northeaster slams the area and knocks out power to the Smith's home.  Candles are lit to shed some light in the home and boy, what a mistake.  Next thing you know, a call to 911 and the Smith's evacuate their dream home with just the clothes on their backs. 

The house is a total loss!  Everything is gone.  The Smith's call up 1-800-cheap-insurance to file their claim as they sit in their hotel room worrying if they made a good decision with their homeowners insurance policy. 

A few days later, the Smith's find out that the home they purchased for $100,000 will actually cost $225,000 to rebuild at today's costs for materials and labor.  They start to get a sick feeling when they realize their cheap home insurance is not going to even remotely cover their loss. 


Trusted Choice House Homeowners Insurance Agent serving Reading, PA, Philadelphia, Lancaster, Harrisburg, Allentown, Bethlehem, PennsylvaniaWhat could the Smith's have done differently to get the proper homeowners insurance coverage?  First, they should have contacted a local, independent insurance broker who could have gotten homeowners insurance quotes from a number of house insurance companies, resuting in the best price available.  Secondly, an experienced local agent would have encouraged the Smith's to consider the age, area and square footage of the home in calculating a proper rebuilding cost for the home. 

Thirdly, an experienced independent agent would know the "out of the ordinary" local perils that could damage the home such as a sinkhole, earthquake, or  surface water runoff.   For example, homes in a low lying areas should homeowners insurance policies with an extention of coverage for sewer back-up & sump pump overflow. 


At The American Insuring Group LTD, our licensed professional agents will take the time to properly advise you on the house insurance you need and the optional coverage available.  We strive to give our clients exceptional advice and professional customer service so they know they will be covered in the event of a claim. We review your home insurance quotes in detail and explain each item of coverage and how it applies in real life.  All homeowners insurance policies have limitations and conditions, so our agents will take the time to explain them and discuss whether your needs justify a modification of the house insurance policy.   

It's always a good idea to get a second opinion on your home insurance policy.  Call American Insuring Group, LTD today at 1-800-947-1270.

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Announcing Blog to Save on Car Insurance and More | Reading PA

Posted by David Ross on Thu, Jan 19, 2012

Insurance Savings & News You Can Use is being launched to help educate our customers and potential clients with insurance information you can use, including advice on how to save on car insurance, homeowner's insurance, life and health insurance, and business / commercial insurance. 

Save on Car Insurance, Life Insurance, Health Insurance, House Insurance, Commercial Insurance | Reading PAOur agency, which is located near Reading, PA, will go in-depth to analyze insurance topics and make the confusing understandable.  We'll do our best to make insurance coverage and terminology clear and concise, so you can make informed decisions on the coverage you need and get the savings you deserve.  We hope to educate, inform, and engage you with our new blog, and we are eager to hear your questions and feedback. 

We are happy to be at your service. Please join the conversation!

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