So, you’ve decided to buy a home. Among the numerous practical considerations that go into the process, you’ll also need to think about purchasing a solid homeowners insurance policy. This plan not only protects the physical structure, but it can also safeguard your belongings and cover costly legal fees. When in search of a policy, keep the following in mind.
The basic components of a home policy are funding for the home itself, protection for your belongings, and liability coverage. You can also opt for additional coverage; for instance, if your home is within a flood plain, consider adding on a policy that addresses the issue. You should also keep in mind that the mortgage lender will establish a minimum of coverage; in most cases, this will be an amount that is at least equal to the cost to replace your home.
The Value of Your Home
Your home itself can also influence insurance costs. For instance, the size and condition of your home may be used to determine insurance rates. Other considerations include how many rooms there are, the materials used in its construction, how old the home is, and whether there are any other structures on the property, such as a stand-alone garage or guest house.
Deductible vs. Premiums
The deductible is the amount you must pay before the homeowners insurance policy becomes active. For instance, if you have a $500 deductible and damage totals $15,000, the insurance company would pay $14,500. The higher the deductible, the lower the monthly premium will be, which is the amount you must pay to keep the policy active. While having lower monthly premiums is nice, make sure you have enough money to cover the cost of home repairs when the time comes.
Siemers Insurance Agency, LLC is a Cincinnati-based insurance agency that strives to put their clients first in all interactions. Over the last six decades, this company has built a reputation for affordable and effective service, whether you need to insure an automobile or are in search of homeowners insurance coverage. If you have questions about purchasing a home policy, feel free to call (513) 469-8877 today. You can also visit them online to see the complete listing of insurance products.