For many people, their home is their most significant financial investment. Because it's crucial to protect your investment, all homeowners must carry the right home insurance to remain fully covered against potential issues. If it's your first time shopping for coverage, you probably have lots of questions. This guide explains a few key basics to help you make an informed decision.  

What Is Homeowners' Insurance?

These insurance products provide funds in the event your property is damaged by a covered peril, which is any event listed within your policy. While not legally required, virtually all lenders obligate homeowners to secure coverage in order to obtain a loan. 

Upon choosing a policy, you must pay a monthly premium to keep it active. You must also select a deductible, which is the amount you must pay out of pocket before funds are released by your insurer. Picking a higher deductible will reduce the cost of your monthly premiums. However, you must have the deductible amount set aside in case of damage, or the repair funds will not be accessible. 

What Does This Insurance Cover?

The structure of your home, including walls, ceilings, floors, roofs, and other components, are all covered by homeowners' insurance. In many cases, coverage extends to other structures on the property, such as free-standing garages and sheds. Most policies also cover personal belongings you have inside, up to a certain cash limit. If you have very valuable items at home, such as jewelry or electronics, you may need a rider to expand coverage limits. 

When it comes to covered perils, most policies offer protection against storm damage, fire, electrical damage caused by a power surge, theft, vandalism, hail, lightning, and car crashes. Flooding and earthquakes are not usually covered by conventional homeowners' insurance, as they require separate policies. Additionally, any damage that results from lack of maintenance is not covered, as insurance is designed to safeguard homeowners against sudden, unexpected events. 

When you have questions about home insurance in Lovington, Hobbs, Lea County, or surrounding areas within New Mexico, Western States Insurance Group, Inc. can point you in the right direction. This independent agency specializes in finding the best policies at the most affordable prices thanks to their wide carrier network. If you're not sure what type of coverage you need, they'll assess your unique risks to ensure you're fully protected. You'll also be impressed by their excellent customer service, whether just signing up or filing a claim. Schedule a consultation by calling (575) 396-1318, or learn more about their insurance services online.  Follow their Facebook and Twitter for the latest news and updates.