Whether you are a first-time buyer or have found your forever home, you want to make sure you are protected! Homeowner’s insurance can be overwhelming and confusing, but take heart! I am going to try to help break it down into manageable pieces and parts so you fully understand what you need, what it costs, and how it protects you. Over the next few weeks, I will post a more in-depth blog on each of these manageable pieces to help you feel more comfortable with the policy terminology and understand the conversation with your insurance provider.
A typical insurance policy has three pieces of coverage: the structure in which you live, the contents inside, and your legal liability. Each of these has financial limits. Keep in mind that the goal of insurance is to make you whole, as if whatever you are using insurance to cover never happened.
Insurance covers a variety of losses, such as theft, fire, wind, hail or explosions. It may also provide coverage for accidents and housing while damage is being repaired or rebuilt.
There are also several moving parts that can determine the cost and the benefit of your insurance policy. For example, a higher deductible (what you have to pay up front in the event of filing an insurance claim) means a lower premium (the amount you pay every month to keep insurance in force.) You can also adjust the limits (how much is covered) to raise or lower your monthly cost. Just make sure your limits are high enough to protect you.
Another thing to understand is whether your policy covers your structure or personal contents at RV (replacement value, which means go buy another TV the same size and model) or ACV (actual cash value, which pays you $50 for the TV you paid $500 for 2 years ago.)
I will walk you through all this, so stay tuned to the blog for more information on keeping Nashville covered!
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