Whether you own your home or have a mortgage against it, it is imperative that you protect it with proper insurance coverage. Please keep in mind that home insurance policies greatly vary in regards to the types of coverage they provide, but you can have them customized to meet your exact needs. This is why it is so pertinent to discuss your options with your insurance agent. Here is a look at how home insurance works and why you need it.
Purchasing a home insurance policy helps ensure both the structure of your home and your personal belongings are protected. Please note that not all belongings are insured individually, rather the value of your belongings is insured. By speaking with a qualified agent, you can talk about the exact amount of coverage you need to ensure your personal belongings are protected.
There are three main ways to insure your home:
- According to its replacement cost
- According to its extended replacement cost
- According to its actual cash value
The type of way you need to insure your home will be determined by your exact needs and preferences. A replacement cost policy generally has a limitation in relation to the maximum dollar amount it will pay out. An extended replacement cost is different because it will usually go over the limit by up to 20 percent to ensure any increase or inflation in construction expenses are covered in the event a claim is filed. An actual cash amount policy will provide coverage in the amount of what it actually costs to cover the damages minus the age and use of the part of the home being replaced or repaired.
To learn more about home insurance policies, contact the LG Insurance Group serving the Marietta, GA area.