Your house is likely one of your most valuable assets. Protect it with homeowners insurance. If you are unsure what that entails, the guide below offers a closer look at what is covered by this type of policy.
Homeowners Insurance 101
What does home insurance cover?
Most homeowners insurance policies cover your home and belongings against theft, as well as damage by storm, fire, falling objects, or vandalism. Should you or a family member accidentally injure someone or damage their property, it also provides a degree of liability protection.
What is excluded?
A basic policy usually excludes damages caused by floods, earthquakes, mudslides, and other mass disasters. However, you can often purchase additional coverage to protect yourself against these perils for an additional premium.
How can you reduce your homeowners insurance rates?
You can lower your monthly rates by increasing your deductible—the amount you pay out-of-pocket before your insurer must contribute. You can also save by installing a security system to prevent theft and vandalism. Finally, most insurers offer "bundle discounts" to policyholders who purchase more than one type of coverage from them. For instance, you can buy home and car insurance through the same company.
Should you insure your home for its replacement cost or actual cash value?
With the fluctuations in the real estate market, tying your homeowners coverage to the house's cash value can cause you to, at times, overpay for insurance, and other times, leave you without the necessary protection. By insuring your property for its replacement cost, you ensure it can be rebuilt to pre-incident standards if it is ever destroyed.
To speak with an experienced agent about your homeowners insurance needs, contact First State Insurance Agency. They have locations in Beatrice, David City, Hickman, Lincoln, Wilber, and Yutan NE, and specialize in home, auto, life, health, business, farm, and crop insurance. Visit their website to learn more about their products or call (402) 979-7585 to request an insurance quote.