5 Things You Need to Know When Buying Homeowners Insurance

How much coverage do you need? Your policy should be able to fully cover the cost of rebuilding your home, along with your belongings and liability risks. Standard policies generally cover your belongings up to half of your home’s value, so you may need additional contents coverage.

 What value should you select for your deductible? A deductible is the amount that you’re responsible for paying when you file a claim before your policy coverage kicks in. The higher the deductible, the lower your monthly premium. For this reason, it’s recommended that you set your deductible as high as you could reasonably afford to pay at any given time.

 What won’t be covered? Standard policies do not cover flood or earthquake damages. They also either cap or exclude coverage for high-dollar items, such as jewelry, fine art or china collections. You can purchase additional coverage or policy endorsements to bridge the coverage gap.

 What will I pay each month? Policy premiums are calculated using a variety of factors. Your independent agent can offer you a quote, which you can then use as you plan your budget. Make sure to account for insurance when you consider your mortgage payment.

 How can I save? There are many policy discounts available; all you have to do is ask. You can often save just by installing security features (such as an alarm system) or bundling your coverage with your auto insurance policy.