The home is an investment that needs protecting. As a result, it's important to purchase and maintain a quality homeowners insurance policy. According to the insurance agents at Farm Bureau of Mebane-Caudill Agency in NC, not every plan will protect all situations. Below, they break down exactly what’s included in a standard home policy.

A Guide to Homeowners Insurance

What Does It Cover?

This policy protects structures on the property, their contents, and you as the owner. The dwelling aspect of homeowners insurance provides financial assistance for repairs or rebuilding that occurs from fires, theft, or severe weather. When such situations happen, the personal property aspect of a policy will assist with part or all of the replacement costs of your belongings inside of the home. If there are other buildings on the property, such as a shed, you'll need a policy that includes non-dwelling structure coverage.

While this insurance provides protection for a variety of aspects of homeownership, each coverage area has its own limits. If the replacement costs exceed the cap, you'll end up facing out-of-pocket costs. As a result, it's important for a policy's limits to match the value of the property. High-cost items, like jewelry, often need additional coverage added in the form of a rider.

What Doesn't It Cover?

There are two major storm events that aren't often covered by standard homeowners insurance policies—floods and hurricanes. The unpredictability and destructive levels of floods are why many providers avoid offering protection for this disaster. As a result, homeowners need to purchase a separate policy from the National Flood Insurance Program, which is a government-backed operation.

If you live in a hurricane-prone area, review your coverage with an agent to find out what aspects are covered. Some providers require a separate policy for hurricane-related issues while other companies cover certain categories of damage. In the latter scenario, a home policy will protect the cost of exterior material replacements as a result of wind damage. However, water-related issues, like a storm surge, typically fall into the flood category.

Keeping your home and family protected often requires multiple or customized policies. Fortunately, you can invest in the right homeowners insurance plan by turning to Farm Bureau of Mebane-Caudill Agency. For over 20 years, the local insurance agency has proudly met the coverage needs of homeowners, drivers, and businesses throughout Mebane and surrounding areas. Request a quote by calling (919) 563-3276. View their policy options by visiting the agency online.