3 Important Numbers to Your Homeowners Insurance

3 Important Numbers to Your Homeowners Insurance

These numbers are significant in your homeowners insurance policy.

Your home is your castle, and it’s only natural to want to protect it. Fortunately, homeowners insurance is designed to do just that. If you take care of your property and insurance policy, then your home can stand in good stead. There are several figures that play a role in the insurance you choose for your home and how much you’ll pay for it.

Deductible

This number determines what you will pay out of pocket in the event of a claim before your insurance steps in to help. When you choose a higher deductible, you take on more responsibility for paying for repairs. As a result, your homeowners insurance premium usually decreases when you raise your deductible. What is it important to remember is that you may have a standard deductible for most incidents, such as fire, theft, and lightning, and another deductible for incidents such as high winds and hurricanes.

Value of Personal Belongings

Typically, standard homeowners policies set coverage at 50 percent of the replacement cost value. For this to be effective for you, you may want to create an inventory of your belongings and their value. Compare the grand total to your homeowners policy. If your things are worth more than what your policy provides, you may want to increase your coverage. You can also allocate coverage for specific items, such as expensive jewelry or antiques, which may otherwise be subject to policy limits. You’ll need a current appraisal of the item.

Supplemental Policies

While your home insurance will protect your home, it has its limits and exclusions. Most homeowners policies do not cover damage resulting from flooding and earthquakes, for example. However, you may be able to purchase a separate policy to cover such incidents.

Now that you know which numbers are important, be sure to provide your home with the reliable homeowners insurance that it deserves! For your insurance needs in Phoenix, Arizona, contact the professionals at American Premier Insurance.