Your home is likely your largest investment, so it is crucial to protect it (and your financial interests) by purchasing adequate homeowners insurance. To help you understand your coverage, the team at Zimmerman Insurance Agency in High Point, NC, answers some frequently asked questions about this type of policy.

FAQs About Homeowners Insurance

What Does Homeowners Insurance Cover?

Homeowners insurance is a collection of coverage types that protect different things. Liability insurance protects you against lawsuits and pays for damages or injuries that occur on your property, while dwelling coverage pays to rebuild your home if it’s damaged or destroyed by a storm or fire. Personal property coverage reimburses you for destruction, damage, or theft of personal belongings, and other policies cover things like cost of living expenses should your home become uninhabitable.

How Much Coverage Do You Need?

You should, at minimum, carry enough coverage to rebuild your home and replace your personal property if they are destroyed. Contact a builder about the cost to replace your home, and take inventory of your furniture, clothing, electronics, appliances, and other goods to estimate the replacement costs.

What Is the Purpose of a Deductible?

Insurers use a deductible to prevent frivolous insurance claims and willful damage of property that the homeowner knows is covered. In other words, it ensures the homeowner has a stake in the game when filing a claim.

Should You Choose a High or Low Deductible?

A high deductible lowers your monthly insurance premium but leaves you to pay more if you need to file a claim. A low deductible costs more each month, but it gives you the greatest coverage should you ever file a claim. Both options have their merits, so choose the one that makes the most financial sense for you.

How Can You Save Money on Homeowners Insurance?

Many insurers offer bundle discounts, so you can save money if you purchase multiple policies (for instance, auto and homeowners insurance) from the same company. You may also qualify for discounts if you have a fire detector, burglar alarm, or another safety system installed.  

If you have more questions about homeowners insurance, reach out to Zimmerman Insurance Agency today. The team has over 50 years in the insurance business and will help you find the right policy for your needs. Visit their website to learn more, or call (336) 883-6512 to request a free insurance quote.