Why do I need homeowners insurance?

Protect your Home, Protect your belongings, and Protect the assets you’ve worked so hard for!

• Dwellings and other structures - For most of us, our home is the single, largest investment we will make. Homeowners insurance provides coverage's for damage to your home and other structures on your property such as a shed or detached garage.
• Personal Property - Homeowners insurance also provides coverage for your household contents and personal belongings. You may think your couch, coffee table, sweaters, shoes, coats, TV, VCR and CD player aren't worth a lot but those items all add up.
• Personal Liability - Finally, in the event someone is injured on your property or you damage property that belongs to others, you could be held legally liable for the injury or damage. The homeowners policy provides personal liability coverage to financially protect you should this ever occur.

Enjoy the benefits of Homeowner’s insurance even if you rent or own a condominium. If you rent or own a condominium, you still need coverage for your household contents and personal belongings and personal liability. There are specific policies designed for those who rent or own condominiums

What I need to know about Homeowner’s insurance

Your Home
With your Farmers Homeowners coverage, your house and separate structures on the premises (sheds, detached garages, etc.) are covered for almost any type of damage except for a few exclusions listed in your policy.


Additional Living Expense
If your home is damaged and becomes uninhabitable, you may need to temporarily live somewhere else while your home is being repaired. Your Farmers Homeowners policy will pay you for increases in living expenses (housing, food, etc.) you incur while your home is being repaired as a result of a covered loss.


Personal Property
Your policy covers your on-premises personal property (household contents, personal belongings, etc), subject to the policy provisions. Your personal property is also protected anywhere in the world, for example, if your clothes are stolen while on vacation, you're covered. But there are special policy limits for your jewelry, watches, furs, silverware, firearms, computers and rugs or carpets made outside the U.S. For a complete list, please check with your Farmers agent.

Typically, your personal property is covered for damages resulting from the following:

• Fire of lightning
• Windstorm or hail
• Explosions
• Riots or civil commotion
• Falling objects
• Aircraft and vehicles
• Sudden or accidental smoke damage
• Vandalism or malicious mischief
• Theft
• Sudden and accidental discharge of water or steam from plumbing system or appliances
• Building collapses
• Personal Liability

Personal Liability and Medical Payments
Your Farmers Homeowners policy pays for bodily injury to other people, for which you are legally responsible, that result from unintentional acts by you or a qualified family member. The policy also provides coverage for damage to of others, again, if you are legally liable. With some exceptions this coverage applies anywhere in the world.
This coverage also pays medical payments for other people injured on your property, regardless of liability, up to certain limits stated on your policy.

How to get the lowest rates on home insurance
Homeowners who guard against theft, accidents and other losses can often get lower insurance rates. Here are some things you can do to help qualify for lower premiums:

• Secure your home with dead bolts and window locks.
• Install a security system with outside signal and connection to local police.
• Install and maintain smoke detectors.
• Install a sprinkler system for fire.
• Install a fire alarm that automatically alerts the local fire department.
• Stop smoking.
• Keep walks and entrance ways clear of snow and ice.

Optional Coverage
There are many other optional coverage's that are not part of your homeowners policy. They can be added to provide coverage above what your homeowners policy typically provides. Some examples are:

• Mortgage Protection Insurance
• Identity Fraud Expense Coverage
• Scheduled Personal Property (jewelry, silverware, fine arts, etc.)
• Personal Umbrella Coverage
• Flood Insurance

Farmers Mortgage Life Insurance
Obviously, for you and your family, no amount of money could possibly replace you. However, consider the financial implications if something were to happen to you. Our Mortgage Life Insurance is life insurance designed to assure that, in the event of your death, your family can remain in the house they love.

Farmers Insurance offers two basic types of Mortgage Life Insurance.

• Farmers Level Term 2000* provides life insurance coverage that remains level. Depending on your need, we may guarantee the premium to remain the same for as long as you need the coverage. What’s more, this plan is very affordable.
• Farmers Decreasing Term Life Insurance * a low cost, traditional decreasing term life insurance plan to cover your mortgage. Farmers offers several types to accommodate your specific needs.

A Deposit Fund** is an optional side fund that can be added to either of these plans to build an additional cash reserve for the future. Payments into the fund can be made at any time. These payments, or even withdrawals from the fund, will not affect the basic policy's death benefit. Interest is earned at a competitive rate, and is compounded annually. The interest rate that this fund earns will never be less than the stated guaranteed minimum.

Personal Articles Floater
There is limited coverage available for your valuables. In most cases, you will need to purchase Personal Articles Floaters, which extends coverage for your personal articles, such as jewelry, furs or fine arts, when their value is higher than the limits state.

Basic flood information

• Everyone lives in a flood zone.
  You don't need to live near water to be flooded. Floods are caused by storms, melting snow, hurricanes, and water backup due to inadequate or overloaded drainage systems.
• Flood damage is not covered by homeowners policies.
  You can protect your home, business, and belongings with flood insurance from Farmers -- up to $250,000 for the building and $100,000 for contents.
• You can buy flood insurance no matter what your flood risk is.
  You can buy flood insurance as long as your community participates in the National Flood Insurance Program. Flood insurance is a good buy even in low or moderate risk areas. Almost 25 percent of all flood insurance claims come from low- to moderate-risk areas.
• There is a low-cost policy for homes in low to moderate risk areas.
  The Preferred Risk Policy is available for just over $100 a year. You can buy up to $250,000 of coverage for your home and $60,000 of coverage for your contents.
• Flood insurance is affordable.
  The average flood insurance policy costs about $300 a year for $100,000 of coverage. In comparison, a disaster home loan for $50,000 can cost you more than $300 a month over 20 years.
• Contents coverage is separate, so renters can get flood insurance.
  Up to $100,000 contents coverage is available for homeowners and renters. Contents are not automatically included with the building coverage.
• Up to a total of $1 million of flood insurance coverage is available for non-residential buildings and contents.
  Up to $500,000 of coverage is available for non-residential buildings and up to $500,000 of coverage for their contents.
• There is usually a 30-day waiting period before the coverage goes into effect.
  Plan ahead so you're not caught without flood insurance when a flood threatens your home or business.
• Federal disaster assistance is not the answer.
  Federal disaster assistance is only available if the President declares a disaster. Nine out of 10 disasters in the United States are not declared by the President. Flood insurance pays even if a disaster is not declared.