In the excitement of purchasing your first house, homeowners insurance can seem like just another expense. However, it provides vital protection for your most valuable asset, as well as some of your other belongings. The guide below provides a closer look at what it covers.

Answering Common Questions About Homeowners Insurance

What is homeowners insurance for?

Home insurance compensates you for damage caused by a wide range of common perils, from fire to tornadoes. It also pays to repair or replace your personal belongings damaged in a covered event, such as fire, tornadoes and theft. 

Is home insurance required in Nebraska?

While Nebraska state law doesn’t mandate that homeowners carry coverage, most lenders require borrowers to purchase insurance. However, weighed against the cost of repairing or rebuilding your home after a disaster, it is always a wise investment.

How much coverage do I need?

Most insurers offer policies based on either the current market value of a property or how much it would cost to rebuild it. Due to inflation and the rising costs of materials, policies based on the replacement value are usually the better option. If you have especially valuable belongings, like artwork or expensive jewelry, you may want to add Scheduled Property riders. .

How are insurance premiums calculated?

A variety of factors go into calculating insurance premiums, including the value and age of your home, the local crime rates, and even the breed of your dog. Whether your home has a security system, a new roof, or sits in an area prone to extreme weather will also affect your rates.

In general, features that reduce the likelihood of you filing a claim—such as a fence—will lower your premiums, while those that put your property or guests at risk—such as a pool—will raise them.

From their offices in Lincoln, NE, Mid-Alliance Insurance Associates, LLC is dedicated to helping homeowners throughout southeast Nebraska protect what matters most. Whether you’re a first-time homeowner or an experienced real estate investor, their agents will provide peace of mind with policies tailored to your needs. Learn more about their products online. Call (402) 421-7800 to request a free quote.