Understanding Home Insurance

Home Insurance which is also called homeowner’s insurance covers damage to or complete loss of your home due to fire, theft, vandalism, hail, lightning strikes, hurricanes, or wind.  It also covers injuries to visitors and accidental damage to a visitor’s property. Read on to learn more about homeowner’s insurance and the many options for home insurance coverage from Sharp Insurance & Financial Services in Ashland, KY. 

Insuring Your Dwelling

Dwelling protection covers the interior and exterior of your home including the foundation, roof, and walls of your home as well as any attached structures like garages and decks.  Also usually covered under a dwelling policy are other structures such as sheds and fences.

Contents within your home are also covered through dwelling insurance. This coverage includes contents of your home such as furniture, clothing, jewelry, and appliances. Most insurance companies will insure the contents of your home and possessions up to a value of 50 to 70 percent of the coverage for your home.

3 Levels of Dwelling Coverage

Dwelling coverage has three basic levels of coverage:

  • Actual Cash Value

Actual cash value pays the cost of repairing or replacing the home and contents after depreciation.

  • Replacement Cost

Replacement cost coverage covers the actual replacement cost without depreciation.

  • Guaranteed Replacement Cost

This coverage pays for rebuilding or repairing your home even if the cost exceeds your policy limit.

Liability Coverage

Liability home insurance covers injuries to visitors to your property.  Liability coverage pays for a visitor’s medical expenses or legal expenses from a lawsuit if you are found to be at fault.

Call Sharp Insurance and Financial Services today for a free home insurance quote. Sharp Insurance & Financial Services serves both Ashland, KY, and the surrounding Boyd County Kentucky area.

5 Things to Know about Home Insurance

Homeownership is part of the American dream. If you own a home (or are about to own a home) and are living your part of the American dream in and around Ashland, KY, you will need to purchase home insurance to keep your investment safe against a potential future loss.

According to Sharp Insurance & Financial Services, homeowners in need of home insurance are advised to ponder these five essential insurance considerations before making a final decision.

  • Purchase insurance you need.

Homeowners’ policies for homes located in the vicinity of Ashland, KY should include coverage for the structure, the owner’s belongings, the owner’s liability/risk, and living expenses during a rebuild.

  • Consider replacement value insurance. 

Without replacement value coverage, possessions, for insurance reimbursement purposes, would be equal to fair market value. This means that without replacement value insurance, an insured will likely not be able to replace everything that was lost, given today’s cost.

  • Consider extended or guaranteed-replacement-value coverage.

Guaranteed replacement covers rebuilding despite cost; however, most companies now offer extended-replacement-value insurance coverage, which adds a preset overage to mitigate inflation.

  • Purchase Policy Endorsements, aka Floaters. 

Floaters are policy endorsements that can be added to a homeowner’s policy to cover big-ticket items that would otherwise not be covered. Homeowners are advised to hold onto to big-ticket receipts, or fax copies to their insurance agents. This ensures a big-ticket’s value will never be disputed in the case of a loss. 

  • Select a policy that maintains pace with inflation. 

Insurance policies can offer homeowners an option that allows the homeowner’s insurance coverage to keep pace with inflation. Inflation is the economic force that drives home prices (and everything else), higher over time. 

The insurance professionals at Sharp Insurance & Financial Services are available now to meet your home insurance needs. Contact us today. 

Do I need boat insurance if I have homeowner’s insurance?

Purchasing a boat is a point of pride for avid fishermen and water sport enthusiasts. To protect the monetary component of a boat investment and provide additional liability coverage, boat insurance is needed. Before setting sail or motoring across a Kentucky lake contact Sharp Insurance & Financial Services serving Ashland, KY to procure a policy capable of meeting your basic needs and beyond.

Homeowners insurance and boats

A common misconception is that homeowner’s insurance provides full protection for boats and other recreational watercraft, but this is not the case. Homeowner’s insurance only provides limited coverage. 

The coverage is limited both in terms of dollar value provided and the events covered. Your homeowner’s policy will provide a flat amount of protection against events such as fire, hail damage, theft or vandalism. The value of most boats, particularly those with motors, will exceed the amount of compensation provided by the policy. 

Liability coverage in a boating accident is also strictly regulated by homeowner’s insurance policies, which makes speaking to a qualified agent very important when setting up coverage. Boats exceeding a certain horsepower are outside the scope of a homeowner’s policy, making secondary coverage through a boat specific policy essential. Other watercraft, such as jet skis, are often not covered at all. 

Boat specific policies

Boat policies bring with them the liability coverage typically found in auto policies — an extremely important element when you are boating with a friend or friends. Your policy can be adjusted to provide coverage adequate for repairing or replacing your boat in full if it is damaged. It can also protect your boat in the event you are in a boating accident with an uninsured boater.

If you still have questions, you can call Sharp Insurance & Financial Services serving Ashland, KY to discuss the particulars of your boat insurance needs and discuss the coverage possibilities.


Don’t Forget About Your Workshop When Considering Your Home Insurance Options

Home insurance typically covers all structures on your property in addition to your family home. If you have a substantial workshop that houses a lot of materials and tools, you may want to take a second look at your policy. Homeowners in the greater Ashland, KY area rely on the team at Sharp Insurance & Financial Services for expert information about the policy options that are available to them. If you have items of significant value stored in your workshop it’s worth taking a second look at your coverage limits and levels on your current policy.

Workshops Need Coverage Too

Even though most outside structures are covered on typical homeowners policies, it never hurts to make sure that all of your valuables are protected. Primary policies often have coverage limits that may make it difficult for you to repair and replace all of your belongings in the event of a total loss. Many people undervalue their tools and equipment that they store in their workshops or sheds. Now is a great time to sit down with an experienced local agent and review your current policy. Homeowners often find that the value of their items has increased substantially since the time when they bought their initial policy. Don’t be caught with inadequate protection if you experience a loss. Homeowners policy riders can include additional coverage for valuable items and those that may be difficult to replace.

The team at Sharp Insurance & Financial Services recommends that our clients undergo a regular policy review to ensure that they have the protection they need. If you are in the greater Ashland, KY area and want to learn more about your insurance coverage options, contact us today. We look forward to working with you!

First time homeowners and insurance

Buying your first home is exciting, and it is important to make sure your biggest investment is safe, protected by the right insurance coverage. Let the professionals at Sharp Insurance & Financial Services in Ashland, KY help you find the best policy for your situation in your new home.

When you get your mortgage, some insurance may be included to protect the lender.  It is good to know what exactly is in this policy and see if it gives you all the coverage you want. It may only cover the structure, for instance.

One important concept to understand is replacement cost and market value. You need to get insurance for replacement cost, which may be different and is lower in many cases.  When talking about the contents, replacement cost is almost always better than market value 

There is dwelling coverage for the house itself, as well as attached structures like a garage. Other separate buildings, like a shed, are a different part of the policy. Personal property coverage is coverage on the contents, like furniture, electronics, appliances and so forth.

Additional living expense coverage would cover you if you had to stay somewhere else after a house fire or were unable to stay in your house for some reason. There is also liability coverage, which protects you if someone gets hurt on your property.

Stop by or call Sharp Insurance & Financial services today in Ashland, KY. we can explain all the details of homeowners insurance and set your mind at ease as you protect your property. We can explain all your options and help you find the best policy for your situation. The best is not always the most expensive. The key is to find a balance in getting the best policy for you as an individual.

Ways to insure your newly refinanced home

When you refinance your home, there are a few ways in which this can affect your home insurance. Typically, a homeowner will choose to refinance when he or she holds certain equity on the home….which is essentially the current value of the home but can increase (or ‘appreciate’) over a certain period of time, in turn….minus the current balance of the mortgage that you still need to pay off. And when you refinance, you’re basically just getting a brand – new mortgage with the goal of reducing the current monthly payments, getting cash out of the home for a bigger, planned purchase, or simply switching between lending companies (as the interest rates or other terms of another may become more appealing, making you an offer you cannot pass up on). You might even decide to change between home insurance providers, opting in for one that better suits your present need.

Also, keep in mind that, when refinancing the home, the mortgage holder, bank or other lending entity will ask that you have your home’s current value newly re – ssessed, just as if the home was currently on sale. And as such, a properly licensed agent will thus appraise the home from every angle to more properly diagnose its actual current valye, regardless of the "stated value" listed when you first signed the mortgage. And naturally, as follows, any and all changes within the home’s value will thus correlate with your home insurance costs; and whatever that final price tag looks like, get at least the MEC or Minimum Essential Coverage if you can afford nothing more. This’ll insure your home. And consider this before refinancing.

Sharp Insurance & Financial Services sells insurance to Ashland, KY customers. They love what they do. Give them a call. Let them help you.

Who Requires Home Insurance?

When you are looking to buy your next home, many important factors need to be taken into consideration. One of the factors that needs to be considered is your home insurance needs. While most people are aware that having home insurance is a good idea as it provides valuable coverage, there are several situations in which having a home insurance policy in place will be required. 

Mortgage Requirements

The first situation in which you will need to have home insurance in place is when you have a mortgage. Most people in the Ashland, KY area will need to take out a mortgage to finance the majority of their purchase price. Having a home insurance policy in place will always be a requirement of any mortgage lender. Depending on where you live, you may also be required to get flood insurance. In many situations, the mortgage lender will also require that you have your payments escrowed on a monthly basis to ensure you stay in compliance.   


If you live in an area that has a homeowners association, such as a condo development, the association documents will often have a stipulation that will require you to carry home insurance. This will help to ensure that you are covered by insurance in the event you or your home causes damage to another property in the association.  

For those that are in the Ashland, KY area, having a quality home insurance policy in place is important. Sharp Insurance & Financial Services will be able to help a local homeowner better determine their insurance needs and requirements. Sharp Insurance & Financial Services will also be able to help them get into a policy that will provide them with the right type and level of home insurance coverage. Try our online rating tool for a quote on home insurance.

A Beginner’s Guide to Home Insurance

Purchasing a new home insurance policy can be overwhelming, but there are a few simple things to keep in mind when getting your home insurance from Sharp Insurance & Financial Services.

Doing some research on insurance terms will help. For example:

  • Actual cash value is the cost to replace or repair your property.
  • The deductible will be your out-of-pocket expenses before the company pays.
  • Floater is coverage that is added to your policy for things like antiques or jewelry.

Some things may affect your rate that you can’t control, so it’s helpful to find out how much insurance will cost before you buy a home. You need to consider your home’s electrical system, plumbing, and overall structure. For fires, the Insurance Service Office (ISO) sets your insurance premiums based on its fire protection class of your town or city on a scale of 1-10. This scale is determined based on the city’s water supply and the number of fire stations.

Not everything will be covered by a basic insurance policy so always know what is covered and what isn’t. Keep documentation of the value of important items in a safe place.

In Ashland, KY, you can participate in the National Flood Insurance Program for additional flood insurance. If you work in the mines, the Kentucky Mine Subsidence Insurance Fund offers reinsurance against the collapse of an underground coal mine.

Beware of your backyard as well. Swimming pools, decks, and trampolines can also increase your liability and insurance premiums. Your dog could also affect rates; certain breeds like German Shepherd may lead to higher premiums, and you could be liable in case your dog bites someone.

Remember to review your policy on a yearly basis. To save money, consider raising your deductible or ask about any discounts.

For more information about a specific policy for your home, contact Sharp Insurance & Financial Services, serving Ashland, KY, at (606) 324-0696.