A home provides us with comfort, shelter, and safety. It’s important to protect yourself and your family against any damages that impact the property. That’s why homeowners insurance is a necessity. In case of an emergency or accident, you’re financially protected from any uncertainties.
What to Know About Homeowners Insurance
What Is Homeowners Insurance?
Homeowners insurance offers protection and coverage if any damage happens to the property. It ensures you are financially compensated if anything needs to be repaired or replaced. It also includes liability coverage, so if there’s an injury at the house, you’ll be protected from a lawsuit.
What Does It Cover?
Homeowners insurance covers property damage, personal property loss, and personal liability. Your policy might even cover other living costs, such as a hotel room if your home becomes unfit to live in. Keep in mind that your policy could provide coverage for destruction from events like a hurricane, but may not for other natural disasters, like a flood.
Is It a Requirement?
It depends on your state. However, if you’re getting a loan for a house, the lending institution will expect you to have a policy in place before obtaining the loan. It’s recommended to purchase homeowners insurance even if you don’t have a mortgage. This is because as an investment, your home needs to be protected.
How Much Will a Policy Cost?
The main factors that impact cost are the home’s value, level of coverage, the town’s crime rate, any past claims, and the state you live in. With basic coverage, the premium will likely cost between $400 and $1500 per year. Shop around for various rates to find one that suits your needs.
How Much Homeowners Insurance Should I Buy?
The amount of coverage you need depends on the replacement cost of the home, the value of your possessions, and the level of liability coverage you want. Home value is based on what it would cost to build the house from the ground up. If you’re unsure about a policy’s coverage, purchase an umbrella policy—it will add one million dollars in liability coverage.
Do you need reliable and thorough homeowners insurance? Call Tower Community Insurance at (256) 259-1116. As a locally owned insurance agency located in Scottsboro, AL, they are committed to providing the best protection for you and your loved ones. From umbrella liability insurance to renters insurance, they will help you build a customized policy. Visit their website to learn more about their services.