Homeowners insurance is designed to protect the biggest investment you’re ever likely to make. As such, it’s important to eliminate any confusion you may have when choosing a policy. With so many options available, shopping for coverage can be overwhelming and challenging, especially for homebuyers who are new to the process. Gaining clarity on all your uncertainties beforehand will help you be better prepared to make sound decisions. Below are the answers to a few common questions people have their first time purchasing a policy.

A Brief Guide to Homeowners Insurance 

Is homeowners insurance required?

Unlike auto insurance, you’re not legally required to carry coverage on your home. However, if you finance your real estate purchase with a mortgage loan, there’s a good chance the lender will require you to purchase homeowners insurance and keep the policy active for as long as you’re making payments. Once your loan is paid off, it’s recommended you maintain your coverage to limit your financial risk. 

What does a standard policy cover?

Standard homeowners insurance policies offer protection against a variety of perils, including fire, inclement weather, falling objects, vandalism, and theft. Coverage will help pay for damages to your home, loss of personal belongings, and additional living expenses incurred while your residence is being repaired. It also provides liability insurance to cover legal costs arising from any bodily injuries or property damages. 

How much coverage do I need?

There are several considerations to take into account when deciding how much homeowners insurance to buy. First, you want to make sure your policy covers the amount it would cost to rebuild your home with the same quality and characteristics. If your home is in an area prone to natural disasters, you might require additional flood or earthquake coverage.

Next, you’ll need to calculate the value of all your belongings and decide if you require special endorsements for expensive items such as jewelry, artwork, firearms, and antiques. Finally, you should also determine if you need increased liability limits.

What factors affect my premium costs?

Insurance companies look at a wide range of factors when calculating policy premiums. This includes the age and condition of the home, type of construction, square footage, neighborhood crime rate, and proximity to a fire station. Fortunately, discounts are available for bundling policies, installing a security system, maintaining good credit, not filing claims, and raising your deductible. 

When it’s time to secure homeowners insurance for your new property, trust Barron Mutual Insurance Company to help you find the most suitable coverage. They understand there’s not a one-size-fits-all policy and will take the time to evaluate your needs before recommending a customized solution that offers maximum protection. For more than a century, they’ve been providing residents throughout the Wisconsin counties of Bayfield, Burnett, Washburn, Sawyer, Polk, Barron, Rusk, and Dunn with quality policies at competitive rates. Call (715) 537-5141 to request a quote, or visit them online to learn more about their services.