Your house is your most valuable asset and potentially the cornerstone of your future wealth. Unfortunately, it is also uniquely vulnerable to damage from fire, storms, and a range of other perils, which is why home insurance is such a valuable investment. Below are answers to a few common questions new homeowners often have about insurance coverage.

Frequently Asked Questions About Home Insurance

Does the law require home insurance?

No state or federal laws mandate that homeowners carry insurance, although your lender will likely require it to cover their investment. However, even if you paid cash for the property, you should still purchase home insurance to protect your home and other assets from the unexpected.

Should you buy a policy for replacement cost or fair market value?

The market value is the amount someone else would likely pay for your house, while the replacement cost estimates the price of completely rebuilding after a disaster. Due to inflation, replacement costs are higher than the market value in most areas, so policies based on those figures typically provide the most coverage.

What does home insurance cover?

In addition to damage caused by fire and severe storms, it also protects your property from falling trees, snowstorms, and a wide range of other significant threats. It will also pay to repair or replace personal possessions lost to theft or vandalism.

Will home insurance protect from lawsuits?

The standard policy includes liability that will cover the cost if someone injures themselves on your property. Without it, you might have to pay out of pocket, potentially putting all your other assets at risk.

If you recently bought a home or are looking for the best coverage available, the independent agents at Cundiff & Company Insurance will help ensure your most valuable asset is protected. They’ve been serving the Somerset, KY, community for over 40 years, offering an array of policies from the industry’s leading carriers. To learn more about their services, visit their website today, or call the offices at (606) 679-8379 for a free quote.