Homeowners’ insurance is important. After all, for most people, their home is their most valuable asset. Not just in dollar value but also in the value of memories as small families grow and children begin having children.
Although Erie does not offer homeowners insurance nationally, if you live in a state they service, Erie homeowners insurance is the policy to buy. Not because they have the lowest rates, because they don’t, but because the company takes very good care of its customers.
It’s important that you check out any insurance company you are considering doing business with and this article we intend to help you make an informed decision.
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About Erie Insurance Company
Erie Insurance Company was established in 1925 with the intention of providing affordable insurance to the farming community. It’s unusual that an insurer who does business in only 12 states and Washington D.C. could end up being ranked the 11th largest insurance company in the country.
As a result of affordable pricing, product selection, and outstanding customer service, Erie is now ranked 5 out of 5 stars for overall customer satisfaction with J.D. Power. Even more unusual is that Erie has a huge agency presence. They currently have over 12,000 insurance agents which averages 1,000 per state, a very high concentration when you consider the company’s geographic territory of operations.
If Erie wasn’t very good at what they do, it’s doubtful they could have grown to be a powerhouse in an industry where most of the large home insurance companies operate in four times more states than Erie operates in.
Erie Insurance Company’s Portfolio of Insurance Products
Just like in large urban areas, Erie realized early-on that their customers would require much more than just home and auto insurance and over time, Erie did well responding to the needs of its clients.
Having a proper selection of products that compete for price and value-wise with the other major players has put Erie in a position to be a one-stop-shop for personal insurance products.Here’s what Erie Insurance Company has to offer:
|Home & Auto||Home & Property||Life & Health|
|Auto Insurance||Homeowners||Term Life Insurance|
|Motorcycle Insurance||Renters||Whole Life Insurance|
|Classic Car Insurance||Condos||Universal Life|
|Boat Insurance||Mobile Homes||Medicare Supplement|
|RV Insurance||Personal Articles||LTC Insurance Riders|
|ATV and Golf Carts||Flood Insurance||Retirement Plans|
Erie offers auto insurance but for the purpose of this article, we will focus on Erie Homeowner Insurance to help you decide if Erie is the right company for you.
Erie Insurance Company Ratings and Financial Stability
The most important thing that an insurance shopper should verify is whether the insurance company you select to do business with is financially stable enough to keep its promise to pay a covered claim now and even three decades from now. Erie’s financial ratings and claims satisfaction rankings demonstrate that they’ll be here for the long-term.
|Rating Organization||Current Rating|
|A. M. Best||A+ (Superior)|
|J.D. Power||5 out of 5 for overall customer satisfaction|
|NAIC||Ranked 8 out of 10 for claims satisfaction|
Erie Homeowners Insurance Policy
Erie Homeowners Insurance policy is written on the HO3 Special homeowners’ insurance coverage form which offers coverage for your home, unattached structures, personal belongings, personal liability, and medical payments to others. This is a basic policy that will do a great job covering most homes but Erie takes the additional step of offering optional coverages to meet your individual needs and circumstances.
|Type of Coverage||What it Covers||Typical Limit of Coverage||Deductible Applied|
|Dwelling||Covers the structure of the home and any attached/built-in appliances||Claims are generally based on replacement cost of the home (land or lot not covered)||Yes - Flat amount or % of structure value|
|Other Structures||Covers any structures on the property not attached to the house such as fences, barns, workshops||Usually 10% of dwelling limit. Can be increased if needed.||Yes|
|Personal Property||Personal belongings inside and outside of your home||50% of dwelling limit but can be increased or decreased as needed||Yes|
|Loss of Use||Pays for temporary relocation expenses while the home is under repair||20% of dwelling limit||Yes|
|Personal Liability||Pays for medical expenses and legal expenses if found liability for injuries or property damage to a third-party||Typically available limits are $100,000 to $1 million||No|
|Medical Payments||Pays medical expenses for third-party injuries regardless of fault||Typical limits are $1,000 to $10,000||No|
Erie takes the initiative to help you have better coverage for perils that are excluded in the standard homeowners’ policy:
- Water backup and Sump Overflow – This additional coverage will help cover the cost of damages caused by clogged drain or sewer line or when a sump pump fails which is not covered under the standard homeowners’ policy.
- Service Line Coverage – “If it’s underground, it ain’t covered” You won’t hear this remark if you add service line coverage to your policy. This coverage takes care of damaged gas, water, or electric service lines buried on your property.
- Identity Theft – This additional coverage will help reimburse the policyholder who is a victim of identity theft.
- Rental Income Coverage – If you rent space in your home or have an attached apartment rented out, this coverage will reimburse for lost rental income if a covered peril forces a tenant to relocate temporarily.
- In-Home Business Coverage – This additional coverage picks up where other standard policy coverage leaves off if you have business equipment and supplies at home.
- Computer and Equipment Coverage – This optional coverage provides additional coverage for homeowners who have very expensive computers and electronics which are more valuable than typical home computer systems.
- Earthquake Coverage – This optional coverage pays for damage to your home and possessions caused by an earthquake, which is typically not included in most standard homeowners’ policies.
- Scheduled Personal Property – If you have valuable watches, jewelry, furs, art, or guns in your home, a standard homeowner’s policy will have special limits on these items that will typically fall well short of replacement value. By scheduling expensive personal belongings, you can insure these items at appraised value and overcome these special limits.
The ErieSecure Home® Insurance Policy
Although Erie offers the standard homeowners’ insurance policy, the ErieSecure Home® policy includes all of the standard coverages plus the following additional coverages:
- Guaranteed replacement cost of your home if it’s damaged or destroyed. It is covered 100% to be repaired or rebuilt.
- “Mysterious disappearance” is added to your theft coverage. This means if you misplace something it is still covered.
- $500 in coverage for Pets
- $500 in coverage for cash and precious metals
- Hard to replace items like passports, deeds, and bills are covered for the cost to replace them.
Erie Homeowners Insurance Discounts
Since Erie Insurance Company is already offering very affordable and competitive rates, the insurance company offers only three significant discounts:
- Multi-Line – Allows policyholders to save money when they purchase more than one type of insurance policy.
- Alarm and Safety Device – Erie will reduce your premiums if your home has a burglar alarm system, smoke alarms, or an automatic sprinkler system.
- Advanced Quote Discount – When you get a quote from an Erie agent at least a week prior to your current coverage expiring, Erie will provide an additional discount on your premium.
The Bottom Line
If you are fortunate enough to live in one of the 12 states that Erie operates in, we recommend that you have Erie Homeowners Insurance on your short-list of companies to contact.
Frequently asked Questions
What does Erie Homeowners Insurance cover?
Erie provides homeowners insurance policies that are written on the HO3 Special insurance form and they include 5 additional coverages that most carriers do not offer.
Does Erie homeowners insurance cover water damage?
Water damage is typically covered on your home insurance policy unless the cause is from lack of maintenance or neglect. They do cover for damage caused by a burst pipe or failed washer hose but water backup coverage is optional.
Does Erie homeowners insurance cover flood damage?
Erie does offer coverage for flood damage if you purchase a stand-alone flood policy. It does not cover for flood damage under the homeowner policy.
What about coverage for mold?
Mold damge is covered under the standard homeowners policy but limited to $10,000 in coverage.