When searching for home insurance, it is essential to understand what is included in your policy so you can make an educated decision on the amount of insurance needed based on your location.
Home Insurance Basics
There are three components to a home insurance policy, including:
Since all home insurance policies come with a deductible, you can select the amount. There are two options when choosing a deductible amount: lower premium for a higher deductible and a percentage of your insured amount.
The first option is that your premium (monthly payment) will be lower if you select a higher deductible, but you must pay more out of pocket if there is a problem that needs to be fixed. The second option takes a percentage of the total amount of your coverage. Percentage-based deductibles typically provide covered perils like a natural disaster.
Dwelling coverage helps pay for the repair or rebuilding of a physical structure that has been damaged on your property by a covered hazard. Most policies cover fire and smoke, hail, explosions, lightning strikes, windstorms, theft, vandalism, damage from snow and ice, damage from an aircraft, falling objects, and damage from a motor vehicle. Separate policies are typically needed for earthquakes, floods, sewer backups, and damage from lack of maintenance.
Liability coverage protects you from lawsuits as a result of injury or property damage that you or your family cause to another individual or home. Damage caused by your pets is also covered under the liability portion of your home insurance. Golden Way Insurance Services Inc. recommends buying enough liability to protect all your assets, so it is important to remember what could be at stake if you are hit with a lawsuit.
If you want more information on home insurance, contact Golden Way Insurance Services Inc. today! Our professionals are ready to answer all your questions and find an excellent policy that fits your budget!
While our office is located in California, we serve all across the following states: California, Texas, Tennessee, Michigan, Florida, New Jersey, Arizona, Nevada, and Indiana.