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Whether you’re a first-time homebuyer or a seasoned owner, purchasing a new home is a major life event. It’s also a huge investment that requires proper protection.
Remember, not all insurance policies are created equal. But what type of coverages are the most crucial? Here are a few important things you should know when deciding on a homeowners policy:
Dwelling coverage: Your dwelling coverage is what ensures that your home will be repaired or rebuilt if it suffers damage or destruction from a disaster that your policy covers, such as storm, fire, lightning, wind, or hail damage.
Loss of use: What happens if your home is so damaged that you have to live somewhere else while it is fixed or rebuilt? Your homeowner’s insurance loss of use coverage pays for you to rent an apartment or live out of a hotel while your home is repaired. Other living expenses such as food are reimbursed as well.
Additional structures: If your property has additional structures such as a shed or a detached workshop or garage, you will need additional structure coverage. This type of building insurance covers any accessory buildings you have on your property besides your home and pays for their repair or reconstruction if they are damaged by a covered loss event.
Personal property: Your computer, television, stove, and linens are all examples of personal property. If they are stolen, destroyed, or damaged, this part of your policy pays for their replacement or repair. There can be variations of coverage especially in the personal property category, so make sure to check out the details when you receive homeowners insurance quotes
Replacement cost: This term is the correct cost of replacing your residence. Specifically, it refers to the amount of labor and materials required to rebuild your home in the event of a claim, The same process is followed when evaluating the value of items inside your house.
Homeowner's coverage is a requirement to obtain a mortgage. However, many additional policy options are not.
This is where our valuable agents come in. They will take the time to go over all your pertinent information, so you can make the correct decisions. The following are a few of the many policy options homeowners encounter:
Additional Coverages: these refer to coverages that provide full property protection. This covers you for costs such as credit card and identity theft charges, debris removal, fire department fees, and costs incurred when replacing damaged landscaping on your property.
Endorsements: homeowner's policy endorsements provide an added layer of protection for your property and valuables. One example is a jewelry floater, which is where you would schedule fine jewelry such as a wedding ring. Another popular endorsement is replacement cost coverage, which pays the full cost of replacing property, not just what the property you own is worth. Overall, there are many types of endorsements, all of which our agents can review in detail to customize your policy.
Rider Options: If you live in an area that is prone to a certain type of disasters such as flooding or earthquakes, you have the option of purchasing a special rider that will cover damages resulting from events that are not usually covered by standard insurance. You can even purchase riders for other adverse occurrences such as war or termite damage.
Keeping Your Homeowners Coverage Affordable
Like many insurance policies, homeowners coverage offers the opportunity for certain discounts. These typically include common items installed in or around your residence. For example, security systems, smoke alarms, and fire extinguishers are all proven to save lives, and having them will make you eligible to receive insurance discounts. Another popular option is bundling coverage. Discounts are provided when purchasing more than one policy at a time.
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