Buying a new home is exciting, and if it is a first home, it can be terrifying as well. So many things to know and worry about and home insurance is not something most people are very knowledgeable about until it becomes a requirement. At CXE Insurance in Sellersburg, IN, we make it our business to make sure that our new homeowners know what and how much coverage they require.
What every new homeowner should know about home insurance
Home insurance doesn’t cover everything
You may feel that you don’t have anything to worry about if you have home insurance, but that is not quite true. Like most types of insurance, home insurance has exclusions. If your home gets flooded by surface water, your traditional home insurance won’t cover the damage. If you live in an area that is prone to flooding, your mortgage company will require you to carry flood insurance. This can be purchased separately through the NFIP (National Flood Insurance Program). It also doesn’t cover owner neglect and earth movements such as earthquakes, sinkholes, and landslides. If your sewer backs up, that also isn’t covered.
You choose the deductible
Before your home insurance starts coverage, you must pay a deductible. You decide the amount of deductible that is right for you. Typically, it can be $500 or $1000. The higher the deductible, the less the cost of the policy, but keep in mind that if you choose a higher deductible, you will need to pay that amount.
Type of content coverage
You have a choice of the type of content coverage you have. You can choose the current value or replacement cost. Current value takes depreciation into account, and replacement cost is what it costs to replace the item at today’s prices.
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Contact CXE Insurance in Sellersburg, IN for all your home insurance needs.