6 things to know about homeowners insurance
Homeowners insurance is a crucial financial safety net for homeowners. Safeguard Insurance Agency provides homeowners insurance in and around Saginaw, Tawas City, Oscoda, Bay City, Midland, MI.
Here are six important things to know about homeowners insurance:
- Coverage Types: Homeowners insurance typically consists of several types of coverage:
a. Dwelling Coverage: This covers damage to your home’s structure, including the walls, roof, and foundation.
b. Personal Property Coverage: This covers your belongings, such as furniture, electronics, and clothing.
c. Liability Coverage: It provides protection if someone is injured on your property, and you’re found liable.
d. Additional Living Expenses (ALE) Coverage: This helps with costs associated with temporary housing if your home becomes uninhabitable due to a covered event.
- Perils Covered: Homeowners insurance generally protects against a range of perils, including fire, theft, vandalism, and certain natural disasters. However, specific policies may exclude certain perils, such as floods and earthquakes. You may need additional coverage or separate policies for these exclusions.
- Deductibles: You’ll have to pay a deductible before your insurance kicks in. Higher deductibles can lower your premium but mean you’ll pay more out of pocket when you make a claim. Choose a deductible that you can comfortably afford.
- Premiums: Your premium is the amount you pay for homeowners insurance. It can vary based on factors like your location, the age and condition of your home, your coverage limits, and more. Comparing quotes from different insurers can help you find the best rate.
- Replacement Cost vs. Actual Cash Value: When insuring your belongings, you can choose between replacement cost and actual cash value (ACV) coverage. Replacement cost coverage pays for the cost of replacing an item at its current market value, while ACV accounts for depreciation, so you’ll receive less for older items.
- Policy Limits: Make sure you understand the limits of your policy. If your possessions or dwelling exceed the policy limits, you may need additional coverage or a higher policy limit to ensure full protection. Review and update your policy regularly, especially if you make significant home improvements or acquire valuable items.
It’s essential to read and understand your homeowners insurance policy and consult with your insurance agent to make sure you have the right coverage for your specific needs. Homeowners insurance can provide peace of mind and financial protection in the event of unexpected disasters or accidents. Please call us without hesitation.