Homeowners Insurance

Homeowners Insurance: A Smart Investment

Home insurance is an important part of home ownership. It provides you with coverage against a wide range of losses that could ruin your home. This is especially important if you need a mortgage loan. It is likely that your lender will require you to keep an active insurance policy until your home is paid. But even after you pay for the home, it is important to have coverage.

This type of policy also includes liability coverage. This helps if you are sued or found financially responsible for anything from a dog bite to a slip and fall accident that occurs on your property. The policy also includes repair and replacement coverage if the property is damaged. Keep in mind that flood insurance is separate from homeowners insurance. You will likely need to add a rider or purchase a separate policy.

When considering the cost of homeowners insurance, remember you have to pay a deductible when filing a claim. So you will pay a deductible on top of your monthly premium. The deductible amount is usually around one percent of the replacement value of the home. You may even be able to adjust the deductible upon request to control the premium.

Speak with an insurance agent about purchasing a homeowners insurance policy. It is a wise investment, and all homeowners should purchase a policy.