Securing property insurance for your home should be a top priority to avoid potential financial loss. Every home is vulnerable to some type of disaster, from severe storms to theft to vandalism. Purchasing the right insurance policy for your home will help mitigate worst-case scenarios. Here are important points to know about property insurance.
Why Homeowners Need Property Insurance
As a homeowner who has worked hard to buy property, you don't want to see a sudden event destroy your home and its value. Choosing the right property insurance will protect the value of your home's structure and its contents. So if it burns down in a fire or gets destroyed by a flood, your insurance agency will be there to pay for a new one based on its reconstruction value. In other words, the insurer pays what it would cost to rebuild your home.
Property insurance doesn't just cover damage to your home but also provides liability coverage if someone is injured on your property. One of the most common cases of visitors getting hurt at a friend's home is slipping and falling, especially in winter when walkways can be slippery. Therefore, you must know what your property insurance covers.
Different Types of Property Coverage
Before signing up for a homeowners' insurance policy, make sure you know what it covers. Not all policies have the same features, as it comes down to the insurance company and how it crafts specific plans. It helps to review the policy with an experienced insurance professional.
Your basic homeowner's policy covers two broad areas: property damage and liability. Property damage includes when a tree falls on your roof, and you need new roofing. It also includes certain types of flooding, although areas prone to flooding may require special coverage and typically cost more. Standard plans also typically cover losses from theft and vandalism.
If you need a specific type of coverage that isn't listed in your basic plan, you can add coverage extensions known as endorsements. There are numerous endorsements to consider based on various factors. Earthquake coverage, for example, typically isn't part of a basic plan, but you can add it as an endorsement. In fact, the best homeowners' policies are customized to cover specific risks that apply to the home.
Property Coverage Insurance Costs
The average cost of homeowners' insurance in the United States is about $1,400 per year, according to 2022 Bankrate estimates. Rates vary depending on factors such as location, age of the home, size, and the number of occupants.
You can lower monthly costs either by lowering risks or raising your deductible, which is the amount you pay upfront for damage when you file a claim. The deductible is a small portion of the total costs, in which your insurance company pays the balance.
Cover Your Property with Abatelli
When you buy a new home, one of your first considerations to protect it should be enrolling inappropriate property insurance. Contact us at Abatelli Insurance Group for more information on providing your home with solid financial protection so you can sleep better at night.
