Figures Within Your Homeowners Insurance Policy

As a homeowner, you do a lot to keep your property safe. From locking the doors to securing reliable homeowners insurance in Hudson, NY, there are a lot of steps you take to safeguard your home. To help you understand your home insurance policy that much more, check out these important figures within your coverage.
Your home insurance deductible is what you’ll pay out of your own pocket before any assistance from your carrier kicks in. When you choose a higher deductible, you take on more responsibility of the repair costs. In this case, you may be granted a lower monthly premium. What many homeowners don’t realize is that there may be standard deductibles for incidents, such as fire, theft, and lightning. While the standard deductible is typically represented as a dollar figure, such as $1,000, the other is oftentimes represented by a percentage, for example, 2 percent of your replacement cost value.
Replacement Cost Value
This is the amount for which you insure your home. It is based on what it would take to rebuild your home today. The replacement cost value is different from market value, which is the price of your home on the real estate market. This number represents the maximum your carrier will pay toward construction costs if your home is completely destroyed. If the figure is too low, you may be paying for repair costs out of your own pocket.
Your home insurance premium is the sum total you’ll pay for your policy after any discounts have been applied. You may receive discounts for bundling policies together, installing safety devices, and having a newer home. Bear in mind that you may incur fees on your premium if you choose to make monthly payment as opposed to paying in full when you purchase or renew your policy.
Are you ready to find the right homeowners insurance coverage for your needs? Visit the team at Lofgren Agency to get started. We can help you understand the ins and outs of your policy so that you know where you’re protected.

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