Things to Know About Homeowners Insurance
Homeowners insurance is a policy that protects your home and belongings against damage or loss due to disasters, theft, or accidents. Understanding its key aspects can help you make informed decisions when choosing coverage. Knabusch Insurance provides homeowners insurance in Temperance, MI, Dundee, MI, Monroe, MI, Newport, MI, Ida, MI and surrounding areas.
- Coverage Types
Homeowners insurance typically includes:
- Dwelling Coverage – Protects the structure of your home from hazards like fire, storms, or vandalism.
- Personal Property Coverage – Covers belongings like furniture, electronics, and clothing.
- Liability Protection – Covers legal costs if someone is injured on your property.
- Additional Living Expenses (ALE) – Pays for temporary housing if your home becomes uninhabitable.
- Exclusions & Limitations
Standard policies don’t cover floods, earthquakes, or normal wear and tear. You may need additional policies for extra protection, such as flood insurance from the National Flood Insurance Program (NFIP).
- Deductibles & Premiums
- A higher deductible lowers your premium but increases out-of-pocket costs when filing a claim.
- Premiums depend on factors like location, home value, and past claims.
- Replacement Cost vs. Actual Cash Value
- Replacement Cost: Pays for new items or repairs at today’s prices.
- Actual Cash Value: Pays for items after factoring in depreciation.
- Discounts & Savings
Many insurers offer discounts for bundling home and auto insurance, installing security systems, or having a claims-free history.
Review your policy regularly to ensure you have adequate coverage. Homeowners insurance is essential for financial protection and peace of mind.
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