Delaware Homeowners Insurance

Last Updated on September 29, 2020 by Andrew Lee

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Your home is one of your most prized possessions; therefore, you should do everything in your power to keep it safe, secure, and protected. There are many things that can contribute to it sustaining damages or losses. Aside from natural disasters, property crimes and accidents can also wreak havoc to your property.

This is why you should never underestimate the power of Delaware homeowners insurance. With this, you can rest easy knowing that your home (and its contents) have protection against potential damage/loss.

Average premiums for homeowners and renters insurance in Delaware

In a recent review from the National Association of Insurance Commissioners (NAIC), it found that the average homeowners insurance policy premiums in the United States amount to $1,096.

Homeowners paid an average of $709 putting Delaware as the 45th state with the highest insurance premiums

Renters, on the other hand, had a median expenditure of $152 putting the state at the 40th place in the same ranking

Financial resource firm ValuePenguin provides further similar information. According to its experts, the monthly insurance payments of DE homeowners is $56.99.

Compared with the national average, this particular state has a .65% difference.

Coverage categories in the event of a loss

Basic insurance policies in the State of Delaware typically consist of four major categories. “Dwellings” fall under Coverage A, “Other Structures” under Coverage B, “Personal Property” under Coverage C, and Loss of Use/Additional Living Expenses under Coverage D. You may also add medical payments and/or liability coverage in your policy.  

In the event of a major accident that renders your home unlivable for a short period of time, you can expect financial assistance from your insurer, as long as you maintain the required Additional Living Expense coverage minimums. With this, you’ll get coverage for temporary rental expenses, food, gas, and mileage.

Key Facts and Market Trends in Delaware: NAIC conducted another study, the topic of which revolve around the key facts and market trends for Delaware. As reported, there are 147 domestic insurance companies in the state in 2015. Including the number of licensed foreign insurers in DE, this count goes up to 1,469.

Insurance company settlements: The waiting time

The length of time associated with waiting for a claim settlement depends on a number of factors, including the Delaware homeowners insurance company you work with, as well as the extent and severity of the property damage/loss. However, as per the United Policyholders, most cases of repairing, rebuilding, or replacement take about 18 to 24 months.

Rules of Delaware on cash value, replacement cost, and depreciation

Actual Cash Value refers to the amount of money settled for the property damage/loss.

Although the homeowners insurance market is complex, this doesn’t mean you should no longer educate yourself about it. You need to at least learn the basics, particularly some of the most commonly used terminologies in the industry.

To set your expectations when filing a claim, you should at least have an understanding of how insurance companies determine settlement amounts. The “Actual Cash Value” refers to the amount of money they will settle with you for property damage/loss. To arrive at this, they use this formula: Replacement Cost less Depreciation Value. Once they obtain the answer, they will then use it as a basis for the settlement.

Because you can’t predict when a natural phenomenon or man-induced accident may hit and wreak havoc to your home, being proactive will help you avoid extremely high out-of-pocket expenditures. Purchasing and maintaining the proper Delaware homeowners insurance policy is one way to protect your home and its contents, as well as your finances.