When shopping for homeowners insurance, it’s important to recognize there’s no one-size-fits-all plan. You must take the time to compare different policies to see what they include, so you can select the one offering the best protection for your home. To ensure you invest in adequate insurance coverage, there are a few things in to look for.
As the most trusted insurance agency serving Northwest Montana, The Insurance Exchange provides their clients with expert guidance when it comes to choosing a policy. Below, they discuss which elements to pay close attention to when going over your plan options:
- Valuation Clause: The valuation clause in a homeowners insurance policy outlines how a structure will be repaired or replaced in the event of damage. Payouts will either be determined by actual cash value, which factors in depreciation, or replacement cost, which is based on what it would cost to rebuild your home.
- Included Perils: Next, you must know exactly what your homeowners insurance will cover. A policy should list every kind of peril that falls under its protection, such as fire, hail, windstorm, lightning, vandalism, theft, water damage from household appliances, etc. Understanding the named perils will help you recognize if you have sufficient coverage or need to add more.
- Deductibles: Deductibles can have a substantial impact on your finances, so it’s vital to consider whether going high or low is more suitable for your situation. Higher deductibles will lower premiums but require a larger out-of-pocket payment, should you need to file a claim. Deductibles may either be based on a percentage or a fixed dollar amount.
Whether you need homeowners insurance for a new purchase or it’s time to renew your existing policy, reviewing these aspects are crucial to making the right coverage decisions. Contact The Insurance Exchange at (406) 756-2500 to inquire about an insurance quote or for additional information.