What is homeowners insurance?
Homeowners insurance is a form of property and casualty insurance. So, it primarily covers your home and the stuff inside of it in the event of theft or some disasters. Homeowners insurance typically covers: fire, windstorm, hail, lightning, smoke, explosion, theft, vandalism, riot and vehicle collision. It commonly excludes earthquakes, flood, power failure, war, nuclear explosion, neglect or intentional damage. Our team can find the right homeowners policy for you in Sugar Land Texas.
Is homeowners insurance required by law?
No. Unlike car insurance, states don’t mandate you insure your home. But, if you’re financing a house, your mortgage lender will likely require you to get some. They don’t want to lose money on their investment. And, honestly, neither will you. Above all, your protection is number one. Finding the right coverage is important. Let Peterson & Grantham find your perfect policy.
Why do I need homeowners insurance?
Because your home is a valuable investment, you should always protect it. Disasters happen and you don’t know what the cost of the damage will be. In 2020 we have seen many wildfires that have destroyed many homes. so, having homeowners insurance will keep you protected. Furthermore, it will give you peace of mind and that is very important.
Will homeowners insurance replace my house if it’s destroyed?
If your house is destroyed by a covered peril, a standard homeowners policy will go a long way toward repairing or rebuilding your home. A homeowners insurance payout is dictated by the fine print of your policy. For starters, you’ll have coverage limits. If your house itself (or “dwelling”) is insured for up to, say, $350,000, you won’t get more than that to replace it. And you could get less, depending on the type of homeowners insurance you have.
What types of homeowners insurance policies are there?
A replacement cost homeowners insurance policy pays claims based on the cost of rebuilding or repairing your home at the time it is damaged or destroyed. An actual cash value homeowners insurance policy pays claims after accounting for any depreciation in your home’s value. Replacement cost homeowners insurance will cover more damage to your property and possessions. Actual cash value homeowners insurance is cheaper, but it usually won’t pay out enough to fully repair or rebuild a damaged home. Therefore, Actual cash value is commonly chosen.