The Importance of Homeowners Insurance – Q & A

Real Estate Agent with Keller Williams Realty

Homeowners Insurance Q & A

Now that it’s easier to get a home loan, many consumers are looking at buying a home. With homeownership, many questions arise, especially when it comes to homeowners insurance. Therefore, I have some information about the importance of homeowners insurance and answers to some of the most common questions. When you purchase a home without a loan, homeowners insurance is completely up to you. So, before you decide to pass on such an important product, view some common questions and the important answers.

Exactly what is covered in a home insurance policy?

The basic homeowner’s insurance policy will cover damage to your home that was caused by inside water damage, theft, fire and smoke, injuries to others and some natural disasters. In many cases you will need additional coverage for flooding, earthquakes and mold.

While you may think these additional coverage’s may not be worth the cost, they could save you thousands in the event that something does happen. Mold remediation alone can easily run between $5,000 and $50,000.

How much does homeowners insurance generally cost?

Every policy and every insurance company is different. Call around and get some quotes on the specific coverage you want and compare the prices. You will also need to decide on how much your deductible will be. Many companies start at $1,000 and go up. You can also choose a ten percent deductible, which means you will pay 10 percent of your home’s value for your deductible. However, if you choose the ten percent option and your home is worth $300,000, your deductible will be $3,000. Carefully decide which option will be best for your budget.

How does filing a claim work?

In the event your home is damaged by inside water, fire, theft, etc., you will call your insurance provider to file a claim. In some cases they will tell you to get some quotes from restoration companies before you file your claim to see if it is going to be more than your deductible. Sometimes they will send a restoration company to you to prevent further damage. Just keep in mind, if you file a claim and an adjuster comes out and tells you it’s not covered or it won’t exceed your deductible, it will still go on your insurance record as a filed claim. Therefore, it’s best to get quotes first. Your local agent should be able to refer several restoration companies in your area.

No matter what type of coverage you choose, just make sure you have at the very least the basic coverage. You can always add more when your budget allows.

In the event you need assistance buying or selling your home, contact Tom Kile – your real estate resource for Amarillo, TX and surrounding communities.


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