Being a first-time homeowner is an exciting accomplishment. However, your responsibilities don’t end after finalizing the purchase. You also need to secure homeowners insurance to protect the investment. As you browse your options, ask your agent the following questions.

What to Ask When Purchasing Home Insurance

Does the policy cover cash value or replacement cost value?

There are two options for insurance coverage, and it’s important to understand which one you have. Actual cash value (ACV) pays out the value of your property as it stands today, which takes into account its condition, age, and the expected life of the property.

Replacement cost value (RCV) covers the amount to replace your home completely without factoring in depreciation. The same type of home and quality of materials are considered and used in the event of a rebuild from damage.

In general, RCV provides more coverage, but it also comes at a higher price. A professional appraisal and guidance from an insurance agent can help you decide which option is best for your situation.

Do you need liability protection?

Liability coverage safeguards you if you’re sued for damages or injuries. It may also cover any issues that occur from your pets, and the policy extends beyond your home to cover you no matter where you are. If you’re taken to court, it will cover fees and monetary awards paid to the injured party.

Are floods and earthquakes covered?

These perils are generally not covered by standard homeowners insurance policies. If you’re in an area where these events happen frequently, an insurance agent can add supplemental plans to protect the property from natural disasters.

What is additional living expense coverage?

Additional living expense coverage is a standard provision that covers costs if you can’t stay on the property due to damage. Hotel costs, meals, and any other fees will be paid out as repairs are performed on your house. This portion of the policy varies based on the company you have, with most options offering coverage equal to 20% of your dwelling protection.

For homeowners insurance in Lincoln, NE, trust Ken Roeloffs Insurance to find the right policy. With more than a decade of experience, the Farmers® insurance agent ensures that every client understands the details of their policies while also finding affordable choices for everything from property to business insurance. He’ll help you choose a policy that covers the unique needs of your new home. Call the agency at (402) 416-9907 for a quote.