THINGS YOU SHOULD KNOW ABOUT HOME INSURANCE

3 THINGS YOU SHOULD KNOW ABOUT HOME INSURANCE

A lot of Americans became homeowners during the COVID-19 pandemic. With work-from-home options becoming more and more viable to different companies, it was no surprise that employees looking at bigger and more affordable housing options outside urban cores started moving into suburbs and towns.

However, this means people are now having to deal with home insurance. While home insurance isn’t a legal requirement the way it is for driving a car, banks often decide to grant or deny mortgages based on whether a prospective homeowner is willing to insurance or not. If you’re thinking of getting home insurance, here are some things you should know about the premiums.

Location Matters

Depending on where you are in the US—or even in a particular state—you plan to live in; this will affect the insurance premiums. Regardless of your feelings on climate change, insurance companies have decided to take it seriously, so if you plan to live in an area where climate change has affected the weather, such as the increased flooding in Texas or Louisiana, expect premiums to be higher in these affected states.

Floaters Or Riders Give You Complete Coverage

Homeowners insurance will protect you in the event of a fire, or a storm, such as a tornado. But it’s not comprehensive coverage that provides for everything. If, for example, you have an extremely rare coin collection worth a lot of money that’s not covered by homeowners insurance, you’ll need a “floater” to cover that. On the other hand, while you might assume a flood is part of a storm, your insurance policy may think otherwise. You may need additional specific coverage for events such as floods.

Property Value Does Not Equal Replacement Value

Home insurance is designed to provide coverage for what it would take to repair and replace a home’s structure in current value. Many people mistakenly believe this means that whatever the house can be sold for to a buyer is what they will get back in insurance money. What it costs to repair or replace a home is not the same as its sale value on the real estate market. Keep this in mind when you are looking at your home insurance coverage.

Contact us

If you’re looking for home insurance coverage for yourself, we can help. Contact Northridge, CA Panorama Insurance Agency Inc. We can look at your plans, see what kind of specific home protection needs or concerns you may have, and come up with the right policy and protection for you and your family.