Purchasing homeowners insurance is a major decision, as you’ll need proper coverage should your house get damaged. Thus, it’s important to understand how these policies work and what they cover. If you’re in the process of buying a home, here’s what you need to know about protecting your investment. 

A Quick Overview of Homeowners Insurance

What is homeowners insurance? 

This type of policy is meant to protect your property against theft, fires, and certain disasters. Generally, it will cover the interior and exterior of the home, your items, and injuries that occur on your property. 

How do claims work?

If your property gets damaged or someone is injured on your property, you can file a claim to cover the financial burden. However, for damages to your home, you will still need to pay a deductible for the covered peril. For example, let’s say there’s fire damage that will require around $15,000 to fix. If your deductible is $5,000, the insurance will cover $10,000. 

How can you save on monthly payments? 

By raising the deductible, you can lower your premiums significantly. However, keep in mind that increasing it by too much could lead to a financial struggle if your house gets seriously damaged.

Adjusting your coverages and making improvements to your home will allow for you to possibly save on your premium as well. In regards to this, always consult with your agent to make sure you have the appropriate coverage for all your insurance needs. 

How can you protect your home from damage and avoid having to file a claim?

Insurance companies will lower monthly payments if you protect your home against disasters and other risk factors. Additionally, by taking preventative measures, you can avoid having to file a claim in the first place. For example, having a security system that not only protects you from theft, but there are also options of security systems that can also detect pipe bursts.

By following the suggestions laid out above, you may be able to avoid damages that could result in a large insurance claim. For more information on protecting your property, get in touch with the team at Farmers Mutual of Tennessee. Since 1913, they have provided quality insurance coverage at an affordable price to residents throughout the state of Tennessee. Their local independent agent will be happy to help you find the right coverage for your home, mobile home, rental dwelling, or farm at a price that suits your budget. Give Farmers Mutual of Tennessee a call today at (800) 824-9555, and visit them online for more information.