Purchasing Homeowners Insurance For Your Lenoir, NC Home Is a Prudent Move
Determining the right amount of home insurance coverage for your property in Lenoir, NC is an important task that you shouldn’t ignore. It’s not a good idea to simply purchase the cheapest home insurance you can find to save money. You may discover the hard way that cheap insurance isn’t the value you think it is. North Carolina insurance companies can help you determine the optimum coverage you need.
Do you need homeowners insurance?
Although you aren’t required by law to purchase insurance to cover damage to your home, many banks and mortgage companies won’t give you a mortgage without it. This type of insurance protects you financially if you must repair a wind-damaged roof, renovate your kitchen after a fire or pay the medical costs of a visitor who injured himself in an accident on your property.
What does homeowners insurance cover?
Most home insurance policies provide the funds you need to repair or rebuild the structure of your residence damaged by fire, water or wind. The home’s style, the type of building materials used, the cost of local materials, labor used for repairs and special features that are part of your home will affect the cost of insurance.
Should you choose a replacement cost policy or an actual cash value policy?
One of the most frequently asked questions is the difference between and the benefits of a replacement cost and an actual cash value policy. If you want to save money on your home insurance coverage, you probably will be drawn to an actual cash value policy. The monthly costs are the less expensive of the two options. However, if you experience a kitchen fire, for example, and need to install new cabinets and counter-tops, an actual cash value policy will provide only part of the costs of the replacement based on the age of the items. You might be responsible for the majority of the costs of the new items yourself. A replacement policy, on the other hand, covers the costs of current items. Once you’ve paid the policy deductible, you won’t have any other financial responsibilities.
Why is liability coverage necessary?
You probably understand that liability coverage is just as necessary as property damage coverage in a homeowners insurance policy. If a guest is injured or something he owns is damaged while he’s on your property, he can sue you for medical and replacement costs. You might think that several thousand dollars would cover you in these situations, but you could be very unpleasantly surprised. Insurance experts are now recommending that you seriously consider carrying up to half a million dollars in liability coverage on your home and adjacent property.
Determining the best kind and amount of homeowners insurance can be confusing. An experienced insurance company such as Southeastern Insurance that offers coverage from several different providers can help you find the best policy for your specific situation. If you live in the Lenoir area, call 800.601.7829 to start saving money on your homeowners policy. You can also contact us through our Homeowners Insurance Quote Form to get an accurate quote.