For first time homebuyers, especially, the many details involved in the home buying process can be so overwhelming that the idea of homeowners insurance can easily become shadowed and given minimal thought. But for all the protection that homeowners insurance offers Michigan and Ohio homeowners, it’s important to give it proper attention before you buy your home. Here are some tips that will help guide you through the process of homeowners insurance.
Be Sure Your Level Of Coverage Is Adequate
Fire, theft, and any other type of unexpected disaster can strike your home within minutes.
Homeowners insurance offers protection of homes, personal property, and liability for accidents on your property. If you took a rough estimate of the replacement value of your belongings and the cost to repair or even replace your home, you’ll know how tough it can be to have to maintain the adequate funds at all times for this type of unexpected expenditure. The more homeowners insurance coverage you have, the less money you will need to pay out-of-pocket in the event that a disaster should strike.
Understand The Details Of Your Homeowners Insurance Policy
In order for you to make a sound decision on exactly what homeowners insurance is best for your situation, you’ll want to have a good understanding of common homeowners insurance terminology.
- Deductible – The out of pocket amount you will pay before your insurance will pay for coverage. The higher your deductible amount, the lower your yearly premium will be.
- Premium – The price that you pay annually or monthly for your insurance policy.
- Personal Property – The contents of your home such as furniture, electronics, and clothing.
- Liability Coverage – Protection that covers medical and legal costs associated with someone being injured on your property.
- Replacement Cost – A type of policy that pays for the full cost to replace your home or personal property, up to a specific maximum amount.
- Actual Cash Value – A policy that pays you the current value of your home or personal property.
Escrow Insurance Payments
For most homeowners, it makes sense to escrow monthly insurance payments into their mortgage payments. This way, the lender will pay your insurance premiums from your escrow account, and they are assured that your insurance premiums are being paid.
Need Help With Homeowners Insurance?
At E&Y Agency, our experienced insurance professionals are dedicated to working closely with clients to be sure that you have the proper homeowners insurance at the best price that fits your exact needs. Call E&Y Agency today at 248-362-1313 with your homeowners insurance questions.