Homeowners’ insurance protects your home, your belongings, and even yourself from certain perils. This coverage differs from home warranties, which are usually limited to repairs and replacements of appliances and some home fixtures. Because choosing the right policy can be a complicated process, many people become overwhelmed. Here are some answers to common questions so you can find the right policy for your situation. 

Frequently Asked Questions About Home Insurance

How much homeowners’ insurance do I need?

Think about how much your home and belongings are currently worth, as well as what it would cost to replace them completely. Also, consider the type of liability threats you face. The liability component of home insurance protects you against third-party lawsuits. For example, if a friend visits your home and is injured in a fall on your property, the person could file suit against you to recoup medical bills or lost wages. 

How is the price calculated?

Insurance companies will look at numerous factors, including home construction costs and materials, how old your house is, which features you have on the property, safety measures you’ve taken, and the size of your deductible. The higher your deductible is, the lower your monthly payments. 

Should I set a high deductible?

A deductible is the amount of money you must pay out of pocket before your insurance coverage becomes active. When deductibles are higher, your insurance premiums will be lower. However, you’ll need to have enough money set aside to cover your deductible in the event of an accident, or the damage won’t be covered. Look at your savings and income to calculate an appropriate deductible amount.

What’s the difference between replacement cost and actual cash value?

The replacement cost is how much it would take to replace your home as it stands right now. The actual cash value is the current value of your home with depreciation deducted. Depreciation increases over time due to age-related degradation.

Choosing a suitable homeowners’ insurance policy is a major decision, and the right agent can guide your choice so that you can enjoy comprehensive protection. This is the goal of Imperial Agency, which has provided almost 40 years of service to residents of Garfield, NJ. Along with personal protection for home and auto, they also help business owners cover their enterprises, from equipment to workers. Schedule a consultation today by calling (973) 546-9567. You can also learn more about their insurance services by visiting the website.