What To Know About Homeowners Insurance

When it comes to buying a home, there's more to it than just getting a mortgage. There are a variety of other expenses that come with purchasing your own property including making sure that it is properly insured. Homeowners insurance is a must in order to protect your home in the event of damage or in other situations. If you are looking into a new policy, it can feel overwhelming. There are various coverage options to choose from. Here are three things that you should know when it comes to this process.

There Are Varying Levels of Coverage

The first thing that you should know is that there are varying levels of coverage for home insurance. You will want to find a policy that is broad enough to suit your needs but that is also affordable. HO-1 is the most basic form of home insurance. It's not used often anymore since it only covers specific events. HO-2 Broad Form insurance offers a little more coverage than an HO-1 policy but is still not sufficient for many homeowners. Most homeowners now go with an HO- 3 Special Form policy which covers you in most instances of damage to your home or belongings. HO- 5 Comprehensive Form policies offer the most comprehensive coverage for most homeowners.

Costs Can Vary

Another thing to consider when shopping for homeowners insurance is that costs can vary significantly depending on a variety of factors including the value of your home and the level of coverage you require. The average national premium for home insurance is right at $1,083. Shopping around can help you find the right amount of coverage for the right price. There are also plenty of options that can help you save including bundling your auto insurance with your home insurance and asking about discounts.

Know The Details

If you take out a home insurance policy, knowing exactly what's covered and what's not is key. You will want to read the fine print in order to ensure that it's the right insurance for your needs. These policies often have deductible ranging from $500 to $1,500. In the event of damage from weather events, you may be responsible for a certain percentage amount of the damage costs. These percentage amounts can range from 5 to 10 percent. It's important to know these details about your homeowners insurance.

If you are about to take out a homeowners insurance policy, there are a few things that you should know. First, there are varying levels of coverage and it's important to choose a policy that suits your needs. Costs can vary but shopping around and bundling your policies can help you save. Once you decide on a policy, it's important to know the details of the policy such as what your deductible is and what you are covered for. Contact an agency, like Boone Ritter Insurance, for more information.