1. Increase your deductibles.
 2. Do not smoke.
 3. Install alarm systems.
 4. Install a fire/police department alarm.
 5. Install deadbolt locks.
 6. Inquire about new home discounts.
 7. Install smoke detectors.
 8. Do not use free standing wood heating devices.
 9. Buy a home constructed of masonry or fire-resistant materials.
10. Locate in fire-protected areas.
11. Insure property at replace cost, not actual value.

Finding the right homeowners insurance is one of the most important decisions you’ll make. Unfortunately, many families are not adequately covered and, in the event of a loss, they may face financial hardships or legal consequences.

The good news is that your Cotton States agent can make sure that you are fully protected. You should talk with an agent before making any insurance decisions. But in the meantime, here is a quick lesson on our most common homeowners policy, known as an HO-3.

Property Coverage for Your Home
The Residence Dwelling portion of your homeowners insurance provides valuable protection for your home and any attached and/or additional structures on your premise. In fact, unless a loss is specifically excluded from the homeowners policy, coverage is provided on additional structures on your premises. This protection equals 10% of your dwelling coverage. (Exclusions do apply. The actual policy provides a complete list of exclusions.)

 It is important for you to insure your home at its replacement value so you do not incur financial consequences for being underinsured. A Cotton States agent can help you determine the appropriate amount of coverage needed.

Another benefit of this policy is its Loss of Use coverage. This coverage protects you should you be forced to move out of your home temporarily because of damage from a covered loss. Loss of Use protection equals 20% of your dwelling coverage.

Personal Property Protection
Your personal belongings are also protected under the homeowners policy. The policy provides coverage for damage caused by the most common types of losses, such as fire, lightning, theft, windstorm and smoke, among others. This protection equals 50% of your dwelling coverage, but it can be increased if needed. Special limits of liability apply on some personal property items.

Losses for personal belongings are paid on an actual, cash-value basis, minus your deductible. Cotton States offers replacement cost coverage on your personal property for an additional premium.  Stop by and see us for more detailed information.

Please note: This information is for summary purposes only and contains a general outline of coverage provided in the Cotton States HO-3 policy, as well as optional coverage available. This is not a contract or a policy of any kind. Complete and detailed descriptions of homeowners policy coverage and exclusions are contained only in the policy itself. Information is subject to change without notice.

Liability Coverages

Personal liability. This coverage is designed to protect you against claims or legal action that results from bodily injury or property damage to others. For this coverage to apply, the bodily injury or property damage must be caused by an incident covered under the HO-3 policy. Legal defense coverage is provided with this policy, even if a suit is false or fraudulent.

Medical Payments to Others. This coverage is designed to help pay for medical expenses for persons other than residents of the household. This coverage applies, regardless of legal liability, when an insured's personal activities cause bodily injury; an accident on your covered property results in bodily injury; or a pet that you own causes bodily injury.

Options for Your Policy

Increased Limits. Cotton States offers you the option of purchasing higher limits of coverage on Other Structures, Personal Property, Loss of Use and Personal Liability.

Scheduled Personal Property. Cotton States offers increased limits and broader coverage on certain personal property, for an additional premium. You can schedule such items as jewelry, furs, firearms, silverware and portable phone.

Boats. Cotton States offers optional coverage for your boat, including coverage for motors, trailers and boat equipment. Watercraft liability coverage is also available.

Replacement Cost Coverage. For an additional premium, Cotton States offers full replacement cost coverage on your personal property. Without this additional coverage, losses on personal property are paid on an actual, cash-value basis, minus your deductible.

Additional options are available. Stop by and see us for more information.