What is Homeowners’ Insurance?
Call Ashley Kimble Slaughter at 225-235-9379 for any questions related to homeowners' insurance or the home buying process. You don’t have to go through the home buying process alone. Ashley Kimble Slaughter has the knowledge and experience to help make this process as smooth as possible. Visit AshleyKimble.net to see featured homes for sale in Baton Rouge, LA.
Homeowners’ insurance is required by mortgage lenders to help insure that they don’t lose money on their investment should something happen to the home or property. It’s equally important for the home’s owner because it protects them against loss. We want to take some of the confusion about homeowners’ insurance away with a bit of helpful information.
In order to determine the level of coverage you’ll need for the home, you’ll want to have a home appraisal completed that gives you an accurate answer about the worth of the home. The appraisal will include the value of the items inside the home, the value of personal belongings, and the worth of the household. This home inventory includes appliances, clothing, furnishings, décor, and electronics.
There are three main types of coverage to consider when choosing homeowners’ insurance. The first type covers the actual cash value. In this case, the home and all items are covered for their worth minus depreciation. If you paid $450 for your television two years ago, you will receive a lesser amount calculated by the time you’ve owned the television prior to needing to have it replaced.
The second type covers the replacement of the home and items. In this case, the coverage does not include depreciation as a factor. This level of coverage offers the original value of what is covered. If you paid $450 for your television two years ago, you will receive that amount towards the replacement of the television.
The third type pays for the actual replacement or repairs. In this case, the insurance company would pay the amount that is above the usual policy limits. This is a guaranteed replacement cost. If you paid $450 for your television two years ago, you will receive the actual amount it will cost to replace that television today. The same television today may be $650, and your guaranteed replacement cost would cover that amount. This is the highest level of protection.
What Will My Policy Cover?
Your homeowners’ policy covers your home, your belongings, and outside structures. Some policies have exclusions, so check with the company who you wish to insure with to get the details. For example, a condominium’s coverage may not include external walls. This isn’t something most people would think to ask, so it’s a good policy to ask about exclusions.
Most weather incidents and accidents are covered. Other things covered may include fire, smoke damage, theft, vandalism, and pipe damage caused by cold weather. Common things not included in coverage are floods, earthquakes, dry rot, and mold. Check with your insurance company to see if they offer an additional policy that will supplement your main policy and cover these options if you feel they will be a consideration in your area.
Your policy may include things you wouldn’t normally consider possible. These coverages may include cost of lodging, meals, and other expenses that are due to being in a temporary housing situation due to repairs or replacements. Deductibles and limits may apply, so check with your insurance company to get these details.
How Can I Save Money on Homeowners’ Insurance?
Adding security features inside and around your home may lower the cost of your homeowners’ policy. Some companies give a discount for multiple policies. This means you might save money if you have your homeowners’ insurance where you have your auto insurance.
There may be discounts that apply because you are in the military or work for a specific company. There may be a discount for living in your community, especially if it’s a gated community with security. Your credit score could save you money if it shows that you’re dependable and pay your bills on time.
How Do I Choose the Right Homeowner’s Insurance Company?
Choosing who will handle your home insurance needs is a big deal. You’ll want to choose a company with a good reputation that is licensed. One of the best ways to research companies is to ask your friends, family, and neighbors who they are insured with for homeowners’ insurance. Find out how long they take to address claims. Check on the friendliness of their customer service representatives. Conduct research online and read customer reviews and their ratings with the Better Business Bureau.
Ashley Kimble Slaughter is knowledgeable about homeowners’ insurance and every step of the home buying process. She is committed to excellence in client service. Give her a call today at 225-235-9379 to find out more about owning your home in Shenandoah or the Baton Rogue area. Interested in selling your home? Check our home value estimator to find out what your home is worth today.