Homeowners insurance is one of the most valuable assets you can have because it will protect your property in various ways. In some instances, mortgage lenders require coverage before approving a loan. Regardless, the policy could save you money in the future. When it comes to choosing coverage, these are things you should look for in homeowners insurance.
Replacement Cost Options
Some homeowners insurance policies cover replacement costs instead of current values for personal belongings, and it would be best to choose this type of policy. Keep in mind that many of your belongings are worth more than their current market value at the time of loss, meaning they’re more expensive to replace. For example, your computer may cost thousands of dollars to replace, but it might only be worth a couple of hundred dollars when it’s stolen from your home. If your policy only offers cash value, you’ll need to pay out-of-pocket expenses to cover the cost of a new computer. Therefore, when searching for a new homeowners insurance policy, always choose the coverage that offers replacement cost and not just cash value options.
An Understandable Deductible
If you’re uncomfortable paying a deductible, you shouldn’t choose that plan. The deductible should be simple, as opposed to having deductibles for separate types of coverage. With multiple deductibles, you could pay more in the end, putting financial strain on your family. Deductibles are often ignored when people compare plans because they choose the lowest price. A high deductible should never prevent you from getting the coverage you need and deserve. Therefore, an adequate homeowners insurance policy will include one deductible that’s easy to understand, with no hidden costs for repairs.
Many people skip buying policies that offer flood coverage because they aren’t within close proximity to water. However, a severe thunderstorm could cause a flood in your area, especially if you don’t live in the mountains. As a result, your assets could be ruined, and without this coverage in your homeowners insurance policy, it could be expensive to repair the damage and replace your belongings. In addition to flood coverage, choose a policy that offers protection for natural disasters like earthquakes.
This coverage should protect you from lawsuits resulting from injuries caused by human beings and pets. For instance, if your dog bites a neighbor, the liability protection in your policy should include coverage for the neighbor’s medical expenses. If someone comes over for coffee and accidentally slips on your kitchen floor, the policy would cover his or her medical expenses in addition to costs associated with a potential lawsuit. Go with another homeowners insurance plan if liability protection isn’t offered.
For more information on choosing homeowners insurance that suits your needs, call on the experienced agents at Altra Insurance Services. In addition to homeowners coverage, we offer a variety of reliable insurance products, including business, renters, and car insurance. Call us today at (800) 719-9972 to learn more about our high-quality service and affordable coverage.