Homeowners Insurance 101

If you search for “home insurance guide” on Google, you will see that there are many insurance companies out there that are offering home insurance. But if you are like most people, you’re probably overwhelmed and wondering how you should choose a policy. After all, your home is your most prized property.

The first step in the right direction is to understand how insurance works. You are basically paying for a company in advance to cover and pay for any damage that may happen in the future. The amount you pay in premiums depends on the risk assessment – the higher the possibility of damage to your home (for example if you live in a flood-prone area like FL), the more you will pay. A lot also depends on the appraised value of your home.

Once you understand this, you can be prepared for how much you would have to pay.

When choosing an insurance company, it is always a good idea to check a comprehensive home insurance guide and determine what you should be getting. Based on our research, you should be getting the following.

Extended replacement cost – This simply refers to your house being rebuilt to its original condition, even if it means the total cost exceeds the policy amount.

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