If your home is destroyed, or your possessions are stolen, can you afford to replace them? For most people, the answer to this question is no. This is why home insurance is so necessary. When shopping for homeowner’s insurance in Sacramento, you need to consider a few things. Not every policy is the same, so it’s important to check out the four key factors of homeowners insurance:
Premium – Your insurance premium is the amount per month that you pay for your coverage. Some policies will give you a yearly quote, while others break it down by month. It’s important to be sure that you can afford your policy.
Deductible – The deductible will tell you how much you have to pay out of pocket when you file a claim. If the damage to your home or the cost of stolen property exceeds your deductible, the insurance will pick up the rest of the cost. For example: If the deductible on your homeowner’s insurance is $3,000, you will need to pay that amount before the insurance coverage “kicks in.” Be sure the deductible on your policy is a reasonable amount – a lower deductible is best, but a low deductible could mean higher monthly payments.
The Specific Type of Coverage – The two types of homeowner’s insurance are market value and replacement value. Replacement value means that your policy will cover the cost to replace your current home. If you go with market value, your insurance will pay you the cost of your home’s worth on the open market.
Discounts – Depending on the policy, you may be eligible for discounts for things like installing a security system.
Exclusions – This one is the most important. Some policies do not cover things like floods and earthquakes. If you live in a natural-disaster prone area, it pays to know what policies you should buy o protect your home.
Eugene C Yates can help you find the homeowner’s policy that suits your needs and your budget. Call 844-313-6100 today!