Your home is one of the largest investments you will make in your lifetime and to protect it, you will need a homeowner’s insurance policy.
A homeowners’ insurance policy will protect your beautiful house if it becomes damaged or destroyed by a fire, natural disaster, or vandalism. It will also protect your home if theft occurs.
While some may think homeowners insurance is not necessary, it really is. If you have a mortgage on your home through a bank or other lender, they will require you to have a homeowners’ insurance policy to protect their investment in your home. If your home is paid off, you will still want to protect it in the case of an incident that damages or destroys your home.
Type of Home Insurance Coverage
Most homeowners’ insurance policies cover the destruction or damage to your home, including the inside and outside, the theft or loss of the things you own in and around your house, and personal liability. This means if someone is visiting you and is injured while on your property, this part of your coverage will pay for their medical bills and other expenses.
There are three different types of coverage when it comes to homeowners insurance. Actual cash value covers the value of your home and belongings in the case of an incident, such as a fire, minus the deductible.
Replacement cost policies will cover the actual cash value of your home and belongings but without a deduction taken off due to depreciation. This means you can rebuild your home to repair it up to its original value.
Guaranteed (or extended) replacement value policies is the most comprehensive type of coverage since it will pay the costs to rebuild or repair your home even if it costs more to do that than the amount your house was worth in the first place. There is a limit, though, depending on the details of your policy.
To create the best homeowners insurance policy for you and your family, you will want to consult with an insurance agent who has the experience and knowledge to guide you in the best way possible. The homeowners’ insurance agents at Calhoun Risk Management in Minneapolis, MN are available to assist you. Call for an appointment today!