Providing a place to grow a family and build an investment, buying a home is a major accomplishment for many consumers. After all, this purchase is often one of the most expensive that people make in their lifetime. However, since a house carries so much value, it’s important to have homeowner’s insurance to protect the property from major losses. If you’re a first-time buyer, here are a few frequently asked questions about homeowner’s insurance and how it can give you more peace of mind as a property owner.

5 FAQ About Homeowners Insurance

Is homeowners insurance legally required?

Unlike auto insurance, homeowner policies aren’t required by law. However, your lender may require you to have this protection to safeguard the investment. Even if it’s not required, you should still invest in a policy to avoid losses that could leave you in serious debt or without a home.

Will a standard policy cover everything?

Standard homeowner’s insurance policies cover many specific perils—including fires, storm damage, and theft. They’ll also cover medical and legal fees associated with accidents that occur on your property.

However, these plans don’t protect against every risk. Damage caused by certain hazards—such as floods—will only be covered if you purchase additional insurance.  

When should I update my policy?

You should update your homeowner’s insurance policy if you ever plan on making renovations. In many cases, you’ll need to purchase short-term insurance to protect against losses that occur during renovations. Once the work is finished, you might also need to increase the coverage of your policy to match the increased value of your home.

How do deductibles work?

Deductibles refer to the amount you must pay out-of-pocket when filing a claim before your coverage kicks in. Sometimes, deductibles will be a flat rate. In other cases, the amount may be adjustable depending on the nature of the claim and the value of the house.

How can I save on my policy premiums?

If you’re trying to reduce your expenses as a first-time homeowner, you don’t have to sacrifice good insurance coverage. In many cases, your provider can offer unique discounts to help you save on premium costs. For example, you can usually get a discount if you bundle your homeowner’s and auto insurance plans. You might also get reductions if you invest in security upgrades.

Being a homeowner can raise many questions—especially if it’s your first time. Fortunately, if you have questions about your homeowner's insurance, Kelley Agency will provide the answers you can count on. Serving consumers throughout Lorain, OH, this independent insurance agency will review the specific characteristics of your property to ensure you’re protected against major risks. They will also compare options from numerous nationally-recognized carriers to help you get a rate that fits your budget. For more details on their products or to request a free quote, call (440) 282-8898 to speak with a friendly insurance agent.