Your house protects everything and everyone you love, so it’s important to find a way to keep it safe. Fortunately, even if something happens to your home and belongings, your finances will remain protected through home insurance. However, policies come in a variety of shapes and sizes, so here’s what you need to know about purchasing home insurance.

What Is Home Insurance?

Home insurance is meant to financially protect you if something happens to your house or property. If you have a mortgage, a lending institution will likely require you to have a homeowners insurance policy amount up to the purchase price of the house.

What Does It Cover?

There are a variety of home insurance plans. A basic plan will cover damage to the exterior or interior of the house, damage or theft of possessions, and personal liability. If your property sustains damage due to winds—such as hurricanes—or vandalism, then your homeowners insurance will usually cover the repairs. However, you’ll need to purchase additional coverage for floods or earthquakes. You can also choose a certain amount you want to insure your possessions for if they become damaged or stolen. If someone becomes injured on your property, personal liability ensures you’re financially protected in case you’re sued. 

How Much Coverage Do I Need?

There are three main levels of coverage—actual cash, guaranteed replacement, and replacement cost value. The actual cash value includes your home and the value of your possessions, minus depreciation. The guaranteed replacement value provides the largest amount of coverage and includes your home and potential repair or rebuilding costs. As a result, this is recommended for those who plan to remain in their home for a long time. Replacement cost provides coverage for the full  repair or rebuild cost of the house, without taking into account depreciation. 

If you need a reliable home insurance policy, Bobby Brown Insurance Agency in Milledgeville, GA, has more than 38 years of experience providing residents in the area with peace of mind. Their team will tailor a policy to fit your needs and budget. When you have to file a claim, they always make sure you receive fair and prompt payment. Give them a call today at (478) 453-9496 or visit their website to learn more about their services.