5 Things You Should Know About Homeowners Insurance
Homeowners insurance is critical to protect your investment in your home. It can help provide financial protection from costly property damages and personal liability lawsuits. Here are five things you should know about your homeowners insurance coverage.
1.Understand Not All Homeowners Insurance Policies Are the Same
A standard homeowners insurance policy typically provides property damage coverage, personal property coverage, additional living expenses coverage and personal liability coverage. But that doesn’t mean all homeowners insurance coverages are the same. When searching for homeowners insurance, you should consider at least three different insurance companies before choosing a policy.
To make sure you’re getting the best home insurance policy for your needs, consider prospective insurance companies’ reputations for claims handling and their financial stability. Your insurance agent can be a critical asset in helping you find the right coverage. Contact Amato Insurance Group to speak to an insurance agent today.
2. Choose Your Loss Settlement Option Carefully
Your policy determines how you will be reimbursed for damage to your physical property. This may include the structure of your home, your personal belongings and other structures on your property.
Here are three loss settlement options you may be able to choose from:
- Actual cash value (ACV) coverage can help pay for property damage by reimbursing you for the current value of your damaged property (accounting for depreciation).
- Replacement cost (RC) coverage can help cover the cost of replacing your damaged property (not accounting for depreciation) up to your policy limits.
- Guaranteed replacement cost coverage can help pay to repair or replace your home after covered losses (not accounting for depreciation), even if the costs exceed your policy limits.
3. Make Sure You Understand Your Deductible
Your deductible is the amount you’ll have to pay out of pocket before your insurance coverage kicks in to cover approved claims. Generally, your deductible amount is adjustable. You can increase your deductible amount if you want to lower your homeowners insurance premiums. But raising your deductible means you’ll have higher upfront costs if your property is damaged.
4. Consider “Ordinance or Law Coverage”
As a homeowner, you should be aware of state-mandated criteria for homes in your area. If your house is damaged or destroyed, it will likely need to be rebuilt to meet current home regulations. These updates can be costly, and their coverage may not be included in a basic homeowners insurance policy. Ordinance or law coverage can help cover the added costs of rebuilding or repairing your home so it complies with the current codes.
5. Understand the Factors That May Affect Your Policy Rates
Your home insurance premiums may differ from those of friends and family. Here are some factors that may affect the cost of your insurance:
- Your deductible
- Claims history
- Coverage limits and amounts
- Home age and condition
- Credit history
Comments or Questions?
Let us answer your insurance questions. Contact Amato Insurance Group in Havelock, North Carolina, for more information on our homeowners insurance coverage and to get started with an insurance quote.
This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.