Why You Need a Premier Choice Policy

The "Coverage A" amount that you select for your policy is usually the limit of payment you would receive to rebuild your house after a total loss.

But that limit can quickly become obsolete, especially in times of high inflation. To help counter today’s rising costs, Premier Choice takes potential inflation into account and includes an Additional Rebuilding Expense Coverage provision.

Let’s say your house cost $350,000 to build a few years ago and is insured for that amount if it is destroyed by a fire. Today’s steep inflation would likely drive up the rebuilding cost to $475,000.

The Additional Rebuilding Expense Coverage provision would extend the Coverage A amount to meet the $125,000 difference.

If your home incurs extensive damage, such as from a house fire, a tornado, hurricane winds, etc., you’ll have to remove the destroyed structure and contents before you can repair or rebuild your home.

This can be very, very expensive, as an actual invoice for debris removal shows below.

Premier Choice will pay up to 10% of your policy’s Coverage A limit toward the cost of debris removal and cleanup. No claim payment deductible applies to this coverage.

It will also pay up to $500 to remove a tree that has fallen across a driveway or walkway or that otherwise blocks access to your property. It even pays up to $1,000 to remove multiple trees that have fallen and block access to your property

Standard homeowners insurance pays personal property claims based on the item’s age and condition – and usually only up to 50% of your policy’s Coverage A amount in total.

So even if a 15-year-old kitchen set you paid $1,500 for is in great shape, you’d likely only get a claim check for $1,050. And given inflation, it may cost a lot more than the $1,500 you originally paid to buy a new set.

Premier Choice provides much better coverage. It pays to replace your belongings with new items of like kind and quality – up to 75% of your policy’s coverage amount for your personal property (Coverage C) in total. So you’d be able to replace your kitchen set with a brand-new version.

Most homeowners policies don’t pay toward repair or cleanup expenses when water/sewer pipes back up into a home or when a sump pump fails and floods a basement. Premier Choice will pay up to $5,000 and higher coverage amounts are available by endorsement.

Three big wins for Premier Choice customers:

1. “Coverage E – Personal Liability” on a standard policy protects you only from claims/lawsuits related to physical injury or property damage. Premier Choice adds coverage for personal injury claims/lawsuits for accidental libel or slander (think social media!).


2. “Coverage F – Medical Payments to Others” on a standard policy pays toward medical costs that other people accidentally incur both on and off your residence premises because of your actions. Premier Choice automatically includes $10,000 of coverage.


3. Coverage for volunteer “wrongful acts.” Believe it or not, you can be sued for actions you do while volunteering. For example, if you set up a sound system for a charitable event and an attendee trips over an extension cord and is injured, that person can sue you. This coverage provides up to $10,000 for damages for which you are found legally liable.)

* The policy’s co-insurance clause requires the dwelling to be insured for at least 80% of the cost it would take to rebuild it in order for Additional Rebuilding Expense Coverage to apply.

Product, service, program, credit, and discount availability and limits vary by state. The information provided on this site is provided for informational purposes only and is not a full explanation of products, services, or coverage. For more information, please contact Electric Insurance Company at 800.227.2757. If there are discrepancies between the information on this site and the policy, the terms in the policy apply.

Electric Insurance Company Risk Coaches help you assess your current coverages and exposure to risk based on the information you provide during your discussion. The services provided are for informational purposes only and do not create a professional or fiduciary relationship. Incomplete information or a change in your circumstances after your meeting may affect coverage requirements or recommendations.