Homeowners Insurance: Everything You Need to Know Before You Buy

Buying a home is a big deal and a significant investment. For most of us, our house is our biggest expense. But, more importantly, our house is our home. It’s where we relax, rest our heads at night, probably work from now, and it’s what keeps us, our family’s, and all of our stuff safe.

Actual Cash Value

With actual cash value coverage, you’d be covered for the cost of your home and belonging after accounting for depreciation. Likely, this would mean you would receive less for your home and belongings than you originally paid.

Replacement Cost

Replacement value policies are the same as actual cash value except it does not take depreciation into account. This would mean you would be able to receive the amount you originally paid for both your home and possessions.

Guaranteed (or extended) Replacement Cost/Value

GRC is the most comprehensive type of coverage. This type of coverage will allow you to receive the total cost of repairing or rebuilding your home, even if it’s more than your policy limit.

How Much is Homeowners Insurance?

Like most insurance policies, the policyholder pays a premium each month to maintain the policy. The premium paid each month can vary based on many factors.

How Does Home Owners Insurance Work?

Like other insurance policies, homeowners insurance will cover the costs of making any repairs due to covered damages after the deductible has been paid. For example, you can make an insurance claim if you incur water damage or damage from a fire.

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