Frequently Asked Questions about Insurance Products

Straight answers to the most frequently asked questions about buying 21st Century Homeowners Insurance Program

Q. How do I know my house is covered properly?
A. During the application process we use a replacement cost calculation system that determines what the cost would be to rebuild your home using current prices for labor and materials. This is how we establish a replacement cost (Coverage A). We send an inspector to most homes for which we bind a policy to confirm that we have provided the correct amount of coverage for you.

Q. Should I make an inventory of everything in my home?
A. A homeowner's insurance policy protects you from damage that may affect the value of your home. A standard homeowner's policy also includes personal liability and theft coverage. An inventory of your possessions not only helps you determine how much homeowner's insurance you should carry, but can also help get your things replaced (or returned) if they should be stolen. Detailed records, including pictures and video tape of antiques, jewelry, silver, sporting goods, major appliances, and collector's items are very important, as these items are difficult to value once they're lost.

Q. What is the difference between an "all risks" policy and a "named perils" policy?
A. A named perils policy covers losses that are caused by specific perils listed in the policy. The perils typically covered include fire, windstorm, hail, and other direct physical losses. An all risks policy covers losses that are caused by any peril except those specifically excluded in the policy. It is important to note that an all risk policy provides broader protection than do named perils policies.

Q.Why does scheduling a jewelry item benefit me when it costs more money?
A. Scheduling jewelry, like any item which can be scheduled, provides more coverage for that item than is provided under the basic homeowners policy. In addition, the item is replaced at the value for which it is scheduled, subject to policy terms. Any jewelry item not scheduled on your homeowners policy can be replaced at its actual cash value, subject to the coverage limitations of the policy.

Q. What is the difference between ACV and Replacement Cost?
A. Actual Cash Value (ACV) is defined as the cost to rebuild your home when it was new minus any depreciation for its age. Replacement Cost guarantees the reconstruction of your home regardless of its current cost, subject to any policy limitations.

Q. Does my homeowner's policy cover damage caused by flood?
A. Homeowners policies do not cover flood damage. However, The National Flood Insurance Program (NFIP) offers flood coverage in many areas. If a mortgage lender determines a home is in a special flood hazard area, the borrower might be required to purchase flood insurance.  Our specialty agency offers coverage through our National Flood Services Program.

Q.I love the idea of saving money, but will I still get the same protection for my home?
A. Definitely. We provide complete coverage. Our specialists tailor your policy to protect your home and its contents, and to protect you against personal liability. 

Q. Do you offer any discounts?
A. Yes. The 21st Century Homeowners Insurance Program gives discounts to homes with protection and early detection features such as smoke alarms, sprinklers, and burglar alarms. We also offer discounts for retirees, since being home helps protect your home.