Quality Homeowners Insurance in Raleigh, North Carolina

Unbeatable Rates and Customer Satisfaction to Ensure Peace of Mind

Homeowners Insurance Policies You Can Count On

The Trusted Barber Insurance Way

Homeowners insurance describes a category of policy that assures the owner of a home financial compensation in the event of damage outside of their control. The specifics regarding what is covered vary depending on your policy and location.

Most states, including North Carolina, do not legally require you to carry homeowners insurance. Still, emergencies are unplanned, and skipping insurance can come at a high cost down the road. Unfortunately, it will be too late to insure your home once there is a need. On the other hand, home insurance provides many benefits, including taking on a portion of the financial risk of owning your residence.

Every policy offered will have different strengths and hit different needs. So let’s dig deeper into the most common home insurance policies to better understand what they cover.

Homeowners Insurance Made Simple

What Are the 4 Main Types of Homeowners’ Policies

Depending on your specific type of structure, at least eight different kinds of homeowners policies are available. In addition, different types of homes have varying insurance needs. This section will discuss the ones specific to homes built at a construction site that you, the homeowner, inhabit. (Follow these links for information on renters insurance, mobile home insurance, and landlord dwelling insurance.)

HO-3 policies are the most common type of homeowners insurance. They are less expensive than some options while maintaining open peril coverage. Open perils cover any disaster not excluded from your contract, meaning you have coverage for a wide range of events. It will include dwelling coverage to assist financially in repairs and reconstruction of the structure of your home. Exclusions can differ, so you should consult an agent for specifics.

Ho-3 policies also include personal possession protection, which pays for damage to your items caused by a covered peril. Additionally, they have personal liability insurance and will cover the costs of injuries to any guest visiting your residence and the costs associated with legal action against you.

This package is the baseline for most homeowners insurance policies. In the HO-1 contract, you will pay the lowest possible premium. However, you will only receive flimsy protection at best. It only includes dwelling coverage, so none of your possessions are insured, and you are held solely responsible for any injury on your property. Furthermore, it is a named peril contract that only covers specific incidents, and you must prove that the damage came from said peril. Because of its limitations, this option is considered the least lucrative.

Talk to a Barber Insurance agent for a list of risks and perils covered under this contract.

Broad-form homeowners insurance is similar to the HO-1 policy. It is a named peril account but extends to cover additional perils and personal belongings. The HO-2 policy is designed to cover a wide variety of disasters, from theft or vandalism to fire or smoke damage. It also typically covers personal items such as furniture and appliances. The HO-2 policy is a great option for those who want an extra layer of protection but do not need the full coverage of an HO-3 policy.

Contact your local Barber Insurance agent for more information on the additional risks and perils covered in an HO-2 insurance policy.

HO-5 insurance agreements are the most inclusive homeowners insurance policies on the market. They cover damage from more risks and assure a higher value on personal possessions and liability. As an open perils agreement, they cover more but may still require additional policies for exclusions like flooding or earthquakes. These policies can be an excellent option for individuals who own a lot of high-value items.

Connect with a Barber Insurance agent today to find out if you qualify for an HO-5 policy and how we can help you achieve confidence in your home’s coverage.

Will Your Homeowners Insurance Policy Be Enough?

Figuring Out How Much Coverage You Need

When purchasing home insurance, it helps to know how the company evaluates a home’s worth. An actual cash value evaluation covers the cost of repairs minus depreciation– or the difference in the item’s value today after use, as opposed to how much it was worth at purchase. It covers what the item is worth at the time of replacement rather than what you paid for it. Actual cash value may prevent you from replacing an item with one of similar quality due to the fact that your payout will not cover all of the associated costs. Replacement cost policies, one the other hand, cover the entire cost of replacing an item with one of similar quality despite depreciation. Your payout is equal to what you paid in the first place and makes it easier to replace damaged items with something of similar quality. You should also be aware that both approaches will have a deductible the homeowner must meet before an insurance payout.

At the time of purchase, insurance companies require you to select coverage equal to 80% of the home’s value to receive replacement cost assurance. So, for example, on a home worth $100,000, you would need an $80,000 policy to qualify for replacement-cost homeowners insurance. It’s simple enough to start. However, many homeowners may want to make improvements to their homes to increase their value directly or for their own enjoyment and benefit. Even if you do nothing with the home itself, the average property values will change dramatically thanks to inflation. Therefore, most people may fail to maintain the necessary 80% coverage. Typically homeowners do not realize this is happening and are blind-sighted with an increased financial obligation once a claim is filed. 

As a customer-first insurance agency, Barber Insurance is committed to you. We do everything in our power to keep you in line with the 80% rule so that you maintain full coverage no matter what.

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Small beautiful home with green landscape

Why Your Homeowners Insurance Premium is So High

Variables that Affect Your Monthly Payments

Homeowners insurance protects you from financial loss caused by damage to your home. Therefore premiums are calculated by how likely a company is to pay. With that in mind, the location, construction materials, and size of your home play a huge part in determining your premium.

Beyond these three determinants, other factors you wouldn’t expect have a part to play.

  • Homeowners with high-risk dog breeds will pay more because dog bite liability (included in the personal liability section) is an expensive payout.
  • Agencies view more than two insurance claims in 3-5 years as a red flag. When reviewing claims history, they emphasize theft, water damage, and dog bite claims.
  • Older homes, especially those without outdated appliances, will have higher premiums.
  • Pools and trampolines are “attractive nuisances” that increase the chances of injury and, therefore, your premium.
  • Poor credit history and individuals with low credit scores are “insurance risks.”

Lighten Your Load, Improve Your Coverage

Homeowners insurance is a necessary evil, but that doesn’t make it any less taxing on your wallet. You should never go with the cheapest company to save money because, as with most things, quality protection costs. Still, it would help if you shopped around to find the best rates and compare qualified agencies to find the best deal.

Always keep your eyes open for discount opportunities. There are plenty of ways to save, but you need an insurance agency with your best interest at heart.

  • Discounts: Every agency will have different discounts for things like bundling insurance plans, loyalty, being claim free, owning a new home, or LEED certifications.
  • Increase Your Deductible: Homeowners Insurance policies with higher deductibles pay smaller premiums because they take on greater financial risk.
  • Surface Level Home Upgrades
    • Replacing The Roof
    • Installing Home Security Systems and Cameras
    • Replacing Outdated and Faulty Appliances.
  • Upgrades to Home System
    • Aging Pipes
    • Faulty Electrical Wiring / Replacing Tube or Aluminum Wiring with Copper.
    • Eco-Friendly HVAC and Water Heater (EnergyStar Rated Appliances)
  • Auto Water Shut-Off Valves
  • Install Wind & Hail Resistant Windows 

Every agency will offer its own discounts and value different upgrades. Feel free to call your Barber Insurance agent to find out what deals you qualify for or how home upgrades can affect your policy.

Trusted Homeowners Insurance In Raleigh-Durham, North Carolina

Experienced, Knowledgeable, & Truly Helpful Customer Service

At Barber Insurance Agency, we have made it our mission to offer the best deals and savings. Homeowners Insurance in Raleigh, North Carolina, is critical. Without it, you could find yourself in a financial nightmare. Still, we know it isn’t easy.

Our agents are here to help. With a customer-first attitude, we do everything we can to combine policies so that you receive what you need at a price you can stomach. First and foremost, however, we believe in education. That means that we have the heart of teachers rather than salesmen.

We want to introduce you to the Barber Insurance way. Let us show you how having a trusted insurance agency on your side can give you confidence in your home like you’ve never imagined possible.