Homeowners insurance is the most effective way to protect your largest investment, as it minimizes many of the risks that come with homeownership. When you shop for a policy, you’ll likely have many questions. The professionals at Pella Mutual Insurance Company in Marion, WI, provide answers to the most frequent inquiries from their clients.

Homeowners Insurance FAQ

What Is the Difference Between Actual Cash Value & Replacement Cost?

Your homeowners insurance policy will either cover the actual cash value of your property or the replacement cost. If you choose actual cash value, your insurer will give you the funds to repair your home, less the amount it has depreciated which is calculated based upon age and condition. With the replacement cost option, the insurer pays what it will cost to repair or rebuild with the same materials at today’s value.

What Does Homeowners Insurance Cover?

Homeowners insurance offers protection in many areas. It will cover liability lawsuits should someone get injured on your premises. Your policy also helps recover losses incurred from events like fire, inclement weather, theft, and vandalism. 

Will My My Homeowners Policy Cover My At-Home Business?

If you operate a business out of your home, it’s best to purchase business insurance separate from your homeowners coverage. A standard homeowners policy won’t cover any liability claims related to your business venture. It may cover inventory and property used for in-home business purposes, but only to a certain extent. 

How Can I Save on Premium Costs?

Most homeowners insurance companies offer several discounts on premium costs. For example, many safety features and security devices such as alarm systems, smoke detectors and carbon monoxide detectors are incentivized since they lower the risk of insuring your home. Claim free discounts are also offered by may companies. This type of discount will lower your premium based on the length of time your policy remains claim free. Other options to reduce costs include increasing the deductible, placing multiple policies with the same agent, and investing in durable building materials. 

If you have additional questions regarding a new or existing homeowners insurance policy, an agent from Pella Mutual Insurance Company can help. The company has supplied the residents of Northeastern Wisconsin, with high-quality coverage since 1876. Their agents will help you find a policy that meets your specific needs while fitting your budget. Call (715) 754-5039 to request a local agent, or visit them online to learn more about the products and services they provide.