While it’s important to have home insurance to protect your house, personal property and liability, it’s just as important to understand your policy. Here are eight things you should know…
- It’s a necessity. While you’re not legally required (like auto insurance) to have home insurance, you need it for peace of mind and to avoid financial disaster if something happens to, or in, your home. Also, most mortgage lenders require home insurance before approving you for a loan.
- Coverage isn’t one size fits all. Work with your agent to determine the best coverage for your home. Consider your house, your personal property, and how much liability insurance you should purchase.
- Deductibles affect your premium, and vice versa. Think of it as a numerical balancing act: The higher deductible you set, the lower your premium will be. If you set a lower deductible, your premium will be higher. It’s up to you and your agent to find your “happy place” for both. (Minimum deductibles may apply.)
- Know your RC from your ACV. When settling a personal property loss, the replacement cost (RC) of an item is the amount you’d pay today to replace the item. The actual cash value (ACV) is the item’s value at the time of purchase minus depreciation of the item since that time. Talk to your agent to know your coverage options.
- Understand what discounts are available. You may qualify for discounts on your home insurance policy – for example, if you have burglar alarms, fire or smoke alarms, deadbolt locks or fire extinguishers.
- Different policies for different homes. Home insurance companies often provide different types of policies based on whether you own a traditional home, a manufactured home or are renting.
- Read your policy carefully. Yes, you could easily name a hundred things you’d rather do than read your insurance policy, but it’s important to know what your policy specifically covers…and what it doesn’t.
- Review your home insurance needs every year. A lot can happen with your home in 12 months, so review your policy annually with your agent.
To learn more about home insurance and get a free quote, contact an Alfa agent today or call us at 1-800-964-2532.
All coverages are subject to deductibles and policy limits. This is not an insurance policy. It is intended only to provide a general description of Alfa Insurance® and/or its product lines and services. An actual policy contains the specific details of the coverages, conditions and exclusions.