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Of major life milestones, buying a home is among the most significant. And once you decide to make such a large financial commitment, your next priority should be shopping for homeowners insurance. Having sufficient coverage is the only way to protect your investment should disaster strike. Putting together a comprehensive policy can be difficult, but the following information will help you make some essential decisions as you sort through different options. 

Common Questions People Have About Homeowners Insurance

Am I required to have homeowners insurance? 

The law does not require you to carry homeowners insurance to own a home. However, if you use a mortgage to fund your purchase, it’s likely the lender will stipulate in the terms of the loan that you must acquire a policy. After all, they have just as much vested interest in the property as you do. 

What does it cover?

home owners insuranceStandard homeowners insurance policies cover damages caused by fire, theft, vandalism, inclement weather, and falling objects. This will pay to repair or rebuild your home if necessary and replace your personal belongings. Policies also generally include a liability portion that will protect you against claims that someone was injured on your property or that you caused damage to someone else’s. Medical expenses, legal fees, and court judgments will all be covered. 

How much coverage do I need? 

The amount of coverage you need depends on a variety of factors, including the value of your home, possessions, and overall financial worth. You will have the option to insure your property for its actual cash value or replacement cost. An actual cash value policy will cover what the home is worth minus depreciation should you experience a total loss. On the other hand, a replacement cost policy will pay out however much it would cost you to rebuild according to current market pricing.

What influences premium rates?

Insurance providers take a number of considerations into account when calculating coverage costs. This helps them determine how risky you are to insure based on the likelihood you will file a claim. Though it can vary from one company to the next, premium rates are generally influenced by the home’s age and condition, location, and safety and security features. Your credit score also has an impact. 

 

Choosing the right homeowners insurance can be challenging, but with the guidance of a professional agent, you can be confident you’re making an informed decision. Residents in and around Lincoln, NE, have relied on Robert Rung Insurance to provide them with quality coverage solutions since 1973. As an independent agency, they can offer you unbiased advice and a range of policy options at competitive prices. Call (402) 483-2279 to request a quote or visit them online to learn more about their services.

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