Facts About Homeowners’ Insurance

Carrollton Homeowners Insurance

All homeowners should have a personalized homeowners’ insurance policy based on their unique needs. Many homeowners simply opt for the standard homeowners’ insurance policy without considering their unique circumstances. There are a variety of facts about homeowners’ insurance that the typical homeowner is unaware of. Do you know all that needs to be learned about homeowners’ insurance?

Yes, you pay your deductible when necessary, but do you know what it is?

You pay your deductible before your insurance coverage kicks in after a loss. You choose your deductible depending on how much you are willing to self-insure after a loss. It is important to realize that the higher deductible you choose, the less your insurance premium will be, because you are taking on additional risks.

What is the difference between Cash Value vs. Replacement Cost?

This is one of the most important decisions you’ll have to make regarding the options of your homeowners’ insurance policy. Actual cash value means that you will be reimbursed for the cost to replace with new property that is of the same kind and quality, less depreciation. Replacement cost means that you will be reimbursed for the current cost of replacing the lost asset with a new one of equal value.

Coverage A: This provides coverage for both the interior and exterior of your home.  This coverage may seem a little excessive sometimes but remember this is replacement value and not market value.  It takes more to rebuild your home than the home will generally sell for.

Coverage B: This will provide coverage for your personal property.

Coverage C: This will provide you with personal liability coverage so that you are protected if you are ever at fault for an incident.

Coverage D: Covers medical expenses for injuries and illness that occur on your property. Coverage E: 

Additional Coverage Include:

  • Additional Living Expenses:  This will provide coverage for living expenses in the event that damages to your home make it inhabitable for a period of time.  
  • 10% extension of building coverage to any free-standing structures

At Mike Leonard Insurance Agency, we can help you receive the peace of mind knowing your biggest investment is properly protected – your home. Contact us today and allow us to help you formulate the perfect combination of homeowners’ insurance coverage options so that you can rest assured that your home is adequately protected.