Understanding Homeowners Insurance
If you own a home in Brentwood, CA, you need to have homeowners insurance. It’s true that some people who rent also buy insurance policies, but this is typical because they have expensive electronics or other items that they want to be protected in the event of loss or damage. Some renters may even opt to purchase coverage that includes liability protection should they accidentally injure someone while on the premises.
Not All Insurance Policies Are the Same
When you purchase a homeowners insurance policy, what you’re actually purchasing is the protection that comes from covering your home, it’s contents, and your medical bills in the event of an unforeseen disaster.
There are many different types of policies with varying levels of coverage. It is important to know what each policy covers so that you can make an educated decision on which one suits your needs best.
Factors that Impact the Cost of Homeowners Insurance
You might have heard that homeowners insurance is based on risk. That's true, but it's not the whole story. The cost of your policy is also affected by:
- The location of your home
- The age of your home
- The size of your home
- The type of construction material used to build your home
- The number of stories in your home
- Roof replacement costs
What Is Covered and What Isn’t?
If you have homeowners insurance, it's important to know what is and isn't covered by your policy. The best way to know the limits of your policy is to read through your policy or talk with an agent. Your insurance company will be able to tell you exactly what's covered and what isn't, as well as how much coverage you have in certain areas.
Other Kinds of Policies You Should Consider
In addition to homeowners insurance, you should also consider other kinds of policies. Here are some examples:
- Renters insurance- If you're renting a home or apartment, it's best to purchase renters insurance. If a fire or other disaster were to destroy the property and all its contents, the policy would reimburse you for those losses.
- Flood insurance- You may be required by your lender or mortgage servicer to purchase flood insurance since many types of mortgages require it as part of their terms and conditions. Many people don't realize that there are two types—NFIP (National Flood Insurance Program) policies and private policies—and they get confused when trying to decide which one is right for them and their situation.
It pays to Find Out About the Types of Policies Available
The best way to get the most coverage for your dollar is to shop around. Find out what types of policies are available, and then get quotes from different companies. You may be able to save money by installing a security system or fire alarm, or through some other means. For example:
- A smoke detector can save you up to 20 percent on your homeowner's insurance premium.
- A carbon monoxide detector can save you up to 5 percent on your homeowner's insurance premium.
- Having multiple fire alarms installed in your home could potentially increase the amount covered under your policy by as much as 15 percent!
If you have a home, it’s in your best interest to find out about homeowners insurance. It can protect you from financial ruin in the event of damage or theft, and it can also give you the peace of mind that comes with knowing your possessions are safe from harm. While there are many options out there, it’s important to find one that fits your needs as closely as possible.