Understand Home Insurance to Generate Leads
Homeowners insurance is not only a good idea; in many situations it is required. For those who are still paying on their home, homeowners insurance is mandatory. For those who already own their home, this type of insurance can provide a much needed cushion and shows preparation in the event that something does happen, resulting in the loss of a home or major damage to the home.
What a Homeowners' Policy Provides
In most cases, your homeowner's insurance policy is going to provide:
- Protection against damage that happens to the interior and exterior of the home;
- Protection for the personal property in the home that may be damaged or stolen;
- Personal liability protection for damages that may be caused on your property from your family or even your pets.
There are many other coverage options that can be included on a homeowner insurance policy; however, these are considered the basics.
There are coverage's that offer to pay for your hotel or motel when, in the event of an insurance claim, you are not able to live in your home. This can be a good idea for many people if they are interested in ensuring that they have lots of coverage and less out of pocket expense in the event that they need to use the insurance.
Levels of Coverage
Every policy is going to provide varying levels of coverage, and every company is going to be different. However, coverage levels are basically three levels:
- Replacement Cost: This basically means that you are going to be repaid for the value of the item without depreciation. Thus, in the event that you lost all your personal belongings, you would get a check for the replacement cost of your personal property.
- Actual Cash Value: This is the value of your home and personal belongings taking into account depreciation and the value of the items today. For example, this would cover how much it would cost to build the same home today including the cost of materials being what they are now.
- Guaranteed Replacement Cost: In the event that your' home and/or personal belongings are gone, this coverage will give you the money for which you have valued the items. However, in many cases, there can be a cap on just how much the insurance company will pay.
Cost of a Homeowners Insurance Policy
The cost of a homeowner's insurance policy is determined by several factors. These factors include:
- The amount of coverage you choose, as more coverage equals a higher monthly payment;
- The deductible you choose. The higher the deductible the less you pay monthly, but this means paying more out of pocket when you need to use the coverage;
- Your zip code, as the more crime that is reported in your area, the more your policy will cost as you are considered a higher risk.
You can make adjustments to get a price that is more affordable for you. However, be sure that you are not skimping on coverage, as homeowners insurance is important to have, and when you need it, the policy is going to be worth every penny.