Are you getting ready to buy your first home? Chances are, you’ve been too busy with the move to think about home insurance, but at Granite Insurance, we’re here to help. Home insurance isn’t just something that’s good to have, it’s a necessity. Its purpose is to protect your home and possessions in the event of damage or theft and it’s a requirement for virtually any kind of mortgage.
If you’re new to the world of home insurance — don’t worry, the insurance experts at Granite have put together this handy guide with all of the basics you’ll need to know. Check it out, and if you’re looking for home insurance in Burke, Caldwell, Catawba, or Watauga counties we hope you’ll give us a call!
Types of Insurance Coverage
Homeowners insurance policies cover much more than just your home. For instance, they also cover stand-alone structures on your property and personal property, as well as temporary living expenses, money paid to someone else if you injure them or cause damage to their property, and medical payments to treat someone injured on your property. The types of items and amounts covered will vary by policy, so it’s a good idea to understand how much coverage you want and how much you are willing to pay for it.
Three Forms of Insurance
In the event that you need to use your insurance, the amount you will be paid depends on the type of “policy form” that you have. There are eight different types with each offering varying levels of protection. The three main forms of coverage include actual cash value, replacement cost, and guaranteed replacement cost. Actual cash value covers your costs minus depreciation while replacement cost policies cover the cash value without deducting for depreciation. Finally, there are policies based on guaranteed replacement costs. This covers costs up to a certain percentage over the amount you purchased. This helps to cover inflation or a sudden increase in construction costs.
Items Not Covered By Homeowners Insurance
You can’t predict every accident that could happen, and likewise, homeowners insurance won’t cover every possible thing. Some of the most common exclusions include damage due to power failure, floods, earthquakes, infestations, and sewer backup, just to name a few. Keep in mind that there are extra bells and whistles, also known as endorsements, that you can purchase in addition to your general policy. These are a good idea if you live in a high-risk area or just want extra peace of mind.
Avoid Overpaying For Your Insurance
Homeowners insurance costs can vary widely depending on several factors including the cost to rebuild your home, your home’s age, your coverage amount, deductible, and even the claims history of others in your neighborhood. While you don’t have control over some of these things, there are some things you can do to avoid overpaying for your insurance. For instance, check into multi-policy discounts, maintain a good credit score, and consider increasing the deductible on your policy. Finally, choose an insurance company such as Granite that can compare a variety of policies from multiple companies to find you the best policy for your money.
There’s a lot to learn when it comes to buying home insurance, but Granite Insurance is here to help. Get in touch with us today to discuss your insurance needs with one of our agents.