As a new homeowner, it’s important you understand the ins and outs of home insurance and the protection it provides. Learning the basics is key to getting the right insurance coverage. At Wellspring Insurance Network Inc. we can explain how home insurance works and answer questions you may have about coverage and costs. Here are some facts you should know before buying a policy for your Frederick, MD home.
Areas to Cover
A good home insurance policy will cover your dwelling, personal goods, liability, and living expenses if you can’t occupy the home due to a disaster. Your coverage should be enough to rebuild your home, if necessary, replace your goods, safeguard you against lawsuits and cover the cost of living elsewhere while home repairs are being done.
Replacement Value vs Cash Value
Cash value coverage pays for the value of personal goods minus depreciation, which may be insufficient to replace your property. Replacement value coverage provides funds to replace everything that’s stolen or lost in a covered peril, saving you thousands of dollars out of pocket. You’ll pay more for replacement value coverage but the protection you receive makes up for it.
Make sure you understand and agree to how your insurer handles the claims process. Some companies pay for losses upfront; others pay a fraction and make you wait for the rest. Some pay for all personal property losses while others only pay for the items you replace. Discuss the claims process with your insurer before signing on the dotted line.
Extra Insurance Coverage
If you own pricey goods, you may need extra insurance to fully protect these valuables as the limits of a standard homeowner’s policy may not cover what these goods are worth.
For customized home insurance coverage at reasonable costs, contact Wellspring Insurance Network Inc. in Frederick, MD.