Buying a home is a significant accomplishment, but it also comes with a substantial amount of risk. Homeowner’s insurance may seem like just another expense. Still, the blanket of protection it provides can save you thousands of dollars, prevent a financial disaster, and protect some of your most precious assets. Below are answers to some common questions first-time homeowners have about insurance.

Answers to Common Homeowner’s Insurance Questions

How much coverage do I need?

Home insurance policies are either based on the current market price of the house or the replacement cost, which is how much it would cost to rebuild after a total loss. In most areas, replacement costs are higher than market values, which usually makes those policies the better choice.

Does homeowner’s insurance cover all my possessions?

While the standard policy does offer generous protection for your personal property, some types of belongings are subject to separate limits. For instance, your homeowner’s insurance may contribute $60,000 to cover items damaged or destroyed in a covered event, but only $5,000 of it may go toward jewelry. If you have especially expensive electronics, art, or other valuables, consider extending your coverage limits or buying a separate policy.

What does homeowner’s insurance protect against?

While the specifics might vary from one carrier to the next, most standard policies will cover damage caused by lightning, fire, major storms, tornadoes, and losses due to theft or vandalism. However, flood damage is usually excluded, so you’ll need an additional insurance policy if your home is in a high-risk area.

Do I need liability coverage?

The liability protection homeowner’s insurance provides is one of the most valuable components, potentially protecting all your assets and your entire financial future. If someone is injured on your property or your dog bites a neighbor, your policy will step in to cover the damages, as well as the costs of your legal defense.

As a local insurance company entirely controlled by its policyholders, Farmers Mutual Insurance Association Of Osceola County is dedicated to protecting the things that are most important to you. Since 1889, they’ve provided fast service and tailored policies to homeowners and farmers throughout Northwest Iowa, with affordable rates and friendly, professional service. Visit their website for more on their homeowner’s insurance services, get safety tips and advice on Facebook, or call (712) 754-3654 today to request a free quote.