What You Should Know About Insurance

Having insurance is important. No matter what questions you have about insurance, you can contact us and we can recommend what is best for you. Check with us at least once a year to make sure your policy provides adequate coverage. In your home, the addition of a room, new insulation or remodeling add value to your home and therefore may increase replacement cost.

Homeowners need to purchase home insurance to protect their homes and personal property. Those who rent need insurance to protect their furniture and other personal property. Everyone needs protection against liability for accidents that injure other people or damage their property. You have the option to choose to insure your home and belongings for either replacement cost or actual cash value. Replacement cost is the amount it would take to replace or rebuild your home or repair damages with materials of similar kind and quality, without deducting for depreciation. It is important to insure your home for at least eighty percent of its replacement value. Actual cash value is the amount it would take to repair or replace damage to your home after depreciation.

The better coverage you have, the less you will have to pay out of your own pocket if a disaster strikes. In some cases, the lender decides how much coverage you need and may require you to buy a policy that covers at least the amount of the mortgage. It is important to note that the amount of coverage you buy for your house, contents, and personal property will affect the price you pay.

The deductible is the amount you have to pay out of pocket on each claim and applies only to coverage on your house and personal property. Make sure when choosing a policy that you are comfortable paying the deductible if you make a claim. Remember, a policy with a $100 deductible will cost more than one with a $250 deductible. Higher deductibles may be available at a reduced price. You can also talk to us and we can advise you on the options that you have.