Very few things are quite as devastating as losing your home to a natural disaster. Fortunately, homeowners insurance can help you rest assured that the investment you have made in your house is protected against the various hazards you may face.
If you are looking for the best and most affordable coverage for your Pontiac home, a local independent agent can offer assistance and advice. Contact an insurance agent near you to get more information and to start comparing customized homeowners insurance quotes.
How Much Does Homeowners Insurance Cost in Pontiac, MI?
Home insurance rates in the state of Michigan are lower than the national average. And, in Pontiac, average rates tend to be even lower. This is largely due to the abundance of affordable housing in this city.
- National average yearly premium: $1,211
- Michigan average yearly premium: $942
- Pontiac average yearly premium: $528
Naturally, your actual home insurance quotes are likely to differ a bit from the average rate listed above. This is because costs are calculated on a case-by-case basis and can depend on several factors including the following.
- The size of your home, the year it was built, and the materials used in its construction
- The type of home you are insuring (e.g. single-family detached house, multi-family home, mobile home, etc.)
- The crime rate and weather risks in the ZIP code where your house is located
- Your claims history and credit score
- The size of your deductible
- Whether you are bundling your homeowners coverage with other policies like car insurance or life insurance
Reviewing a variety of homeowners insurance quotes can help you be sure that you are getting your homeowners insurance at a great price. Independent insurance agents may comparison shopping easy.
What Are the Risks Faced by Homeowners in Pontiac?
Your home insurance policy is designed to cover against most of the damaging risks you are likely to face as a property owner in Pontiac.
Catastrophic events in Michigan
- Number of federally declared disasters in Michigan: 42
- Most common causes of disasters in the state: Floods, severe storms, and tornadoes
- Average number of tornadoes per year in Michigan: 16
- Average amount of property damage per year in MI: $897 million
- 1 in 15 insured homes has a claim each year
You can expect your policy to include coverage against hazards like accidental fires, burglaries, and severe weather events like strong winds, severe storms, tornadoes, hail, and freezing temperatures.
Also, because this city is subject to lake-effect precipitation, heavy snowfalls are likely and can cause damage to roofs and gutters. Fortunately, this risk is also covered by homeowners insurance.
A Word about Flood Damage in Pontiac, MI
It is important to be aware that flood damage is not covered by homeowners insurance. Fortunately, your local independent agent can help you supplement your home insurance with a flood insurance policy through the National Flood Insurance Program (NFIP).
Property owners whose houses are located in FEMA-designated flood zones are required by their lenders to carry flood insurance until their mortgages are paid in full. Otherwise, this coverage is optional.
Bear in mind, however, that more than 20 percent of all flood claims filed are for properties that are located outside of designated flood zones. According to FEMA, just one inch of water in your home can cause as much as $25,000 in property damage. Therefore, whether or not it is required, this coverage can prove invaluable.
Talk to your local insurance agent for help securing an affordable flood insurance policy.
What Is Loss of Use Coverage?
The risk of tornado activity in Pontiac is 40% greater than the national average. One of the worst to strike in the area was an F4 twister that touched down less than seven miles from the Pontiac city center in 1976. This tornado causes several millions of dollars worth of damages.
If a major disaster like a tornado destroys your house or leaves you unable to live in your house until repairs are made, the loss of use coverage in your homeowners insurance can cover your temporary living expenses.
This coverage can pay for hotel accommodations and can provide you with a meal allowance. It can also cover your additional mileage if you need to drive further to get to and from work.
Talk to your local insurance agent to learn about what loss of use coverage can do for you.
Why Is Liability Insurance Important for Pontiac Homeowners?
Your homeowners insurance also provides you with a significant amount of personal liability protection. This can prove quite beneficial if you find yourself on the wrong end of a liability lawsuit.
Homeowners liability insurance is designed to cover expenses such as court costs, legal fees, and financial damages if you or someone in your household is unintentionally responsible for injuries, property damage, or financial losses to others.
Examples of times your homeowners liability insurance can help include the following.
- If a guest in your house trips over loose carpeting and suffers a significant neck injury
- If your child hits a baseball through your neighbor’s window while playing in the backyard
- If you accidentally hit someone with a golf ball while enjoying a day at the Pontiac Country Club
- If your dog gets loose and bites a jogger
- If you are accused of libel or slander
Most home insurance policies offer between $100,000 and $300,000 worth of liability coverage. If you want more liability coverage than your home insurance can provide, your local insurance agent can also help you find an affordable umbrella insurance policy.
Talk to your insurance agent to learn more about what homeowners liability insurance can do for you.
Does Pontiac Homeowners Insurance Cover against Burglaries?
The burglary rate in Michigan is lower than the national rate; but in Pontiac, the risk is significantly higher. Residents of this city report about 500 burglaries a year.
- Number of burglaries per 1,000 homes in the US: 3.76
- Number of burglaries per 1,000 homes in Michigan: 3.17
- Number of burglaries per 1,000 homes in Pontiac: 6.89
Being the victim of a burglary can be very stressful. However, you may gain some comfort in knowing that your home insurance can pay to replace your stolen property once your deductible has been met.
Home security systems make excellent theft deterrents. In fact, many homeowners insurance companies offer discounts to policyholders who have them installed in their houses.
Of course, nothing is foolproof against a determined burglar. If your house is broken into, the first thing you should do is make sure that you and your family are safe, and then notify the authorities. You will need to have a copy of the police report when you file a claim.
Your local insurance agent can provide you with assistance throughout the claims process if needed.
Why Work with an Independent Insurance Agent in Pontiac, MI?
Independent agents in Pontiac are available to answer all of your insurance-related questions. These agents, who live and work in your community, make it easy to find the best and most affordable homeowners insurance policy.
Independent insurance agents are free to work with several different insurance companies. This enables them to quickly provide you with a selection of customized quotes from a few competing insurers. That way, you can be sure that you are getting the coverage you need at the most competitive price.
Find an insurance agent near you to get started.
TrustedChoice.com Article | Reviewed by Jeffrey Green
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