Homeowner's Insurance - Do you have the right coverage?

I just attended an insurance seminar and, wow, was it an eye-opener!  I thought I was doing the right thing by checking the coverage amounts every few years, but now I need to go back and see if I even have the right coverage!

So here are a few highlights from the seminar and I'm happy to answer questions or refer you to someone who can if I don't know the answers.

There are three types of Homeowner's Insurance:  HO-A, HO-B and HO-C policies. 

HO-A is the most basic coverage and only covers what is actually listed on the binder.  If it's not listed, you don't have it!

HO-B is broad coverage and is what most of us need.  It covers a lot more than an HO-A policy and this is mostly likely the type of insurance you should have.

HO-C is very extensive and expensive coverage and most people don't have a need for this type of coverage.

If you own investment property or have purchased a second home, you need to let your insurance agent know to make sure you have the right coverage.  In our market a lot of parents buy homes for their college students, but if the college student's name is not on the house the parents cannot carry homeowner's insurance but need to carry investment insurance instead. 

Finally, living in a house that's out of the 100-year flood plain and built up fairly high, I have never considered flood insurance for my home.  However, a recent statistic shows that over 60 percent of all homes that were flooded last year were in the 500-year flood plain where most owners don't carry coverage!  As the flood maps are being redrawn, some areas are being put into 100-year flood zones that will now require homeowners to carry flood insurance.  If you have a house in the 500 year flood plain and you carry flood insurance on it, if the maps are redrawn to a 100 year flood plain, you will be grandfathered in at your lower rate.  It's something to think about!