Understanding Your Home Insurance

If you have ever looked at your homeowner’s policy, you’ve seen words that may be unfamiliar to you. There are terms that are standard in the industry, and it will help you to understand them when talking about home insurance in Augusta. Make sure you have the right policy for your needs.

The deductible is the amount you pay out of pocket before your insurance pays anything. Higher deductibles lower your annual premium costs. The premium is the price you pay for your insurance. Homeowner’s insurance is generally calculated annually.

Your homeowner’s policy provides multiple layers of protection for you and your home. Liability coverage pays for medical and legal costs if someone is hurt on your property, usually due to negligence. Check your limits of your home insurance in Augusta to make sure it will cover the rising costs of medical care.

Actual cash value is a type of policy that gives you the current cash value for property and your home. This is different from replacement cost insurance. Cash value insurance includes depreciation. You may want to consider having the actual cash value policy on your home, and replacement cost on your personal property.

Your home insurance in Augusta may include riders, which are policies you can add to cover specific items like antiques, artwork, or even expensive heating and air-conditioning systems. Make sure that you talk to your agent about the actual contents of your home so that you know what is covered.

 

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