If you are considering buying a home, or if you just bought one, congratulations. For most people, homeownership will be the biggest investment in their lives. Naturally, you will want to protect your investment in ways that are effective and make sense. Work with your agent at High Point Insurance Group, serving Dadeville, AL, and the surrounding area. Your agent will explain the details about home insurance and other things that you need to consider.
Here are the basics you need to know:
- Deductible: Home insurance may have a deductible, which is the amount of money that will have to be paid by you before the insurance will pay on a valid claim. Having a higher deductible usually reduces the monthly premium, but you will need to have more cash available to pay for things if something goes wrong.
- Premiums: Premiums are usually paid monthly and should be set up on an automatic payment system to make sure they are always paid on time, and there is never a lapse in insurance coverage.
- Flood Insurance: Flood insurance is usually not included in a home insurance policy and needs to be considered as a separate policy.
- Replacement Cost: Replacement cost insurance provides for the payment of valid claim up to the policy limit to replace all or part of a home. If the limit is adequate, it should cover all the costs to rebuild a home that is destroyed.
- Actual Cost: Actual cost is what the home is worth. This is usually lower than the replacement cost, meaning replacement cost coverage is better.
- Commercial Activity: Home insurance usually does not cover any commercial activity, including renting out a room or having a home office. If you plan to do any business in your home, then talk to your agent about also getting commercial insurance.
- Life and Disability Insurance: It is a wise strategy to also carry life insurance for the amount needed to pay off the mortgage on the home if the earning member(s) of the family is permanently disabled or dies. This allows the rest of the family to be protected.
Contact your agent at High Point Insurance Group in Dadeville, AL to discuss your specific needs and get a quote for home insurance and any other insurance that you need for protection.