People often purchase homeowners insurance because they are interested in protecting the investment they have made in their homes. However, most of them may not understand what their policy covers or how their coverage and premiums are even calculated. The key to having the right amount of coverage is to know what your policy covers and how much coverage you need to adequately protect your home.
What Are the Factors That Can Affect My Homeowners Insurance?
Several specific factors affect your homeowners’ insurance. A few of them include:
- The location of your home
- The market value of your home compared to the cost of replacing your home
- How much coverage do you want
- Your home’s condition as well as its age
- Home security/automation features
- Privacy or security fencing
Some of these factors are out of your control but doing whatever you can to protect your home and help it hold its value is important. Your agent can go into detail about what factors will affect your homeowners’ insurance more than others. They can explain why each factor is important and how they affect your policy in general.
How Will Renovating or Repairing My Home Affect My Policy?
Home renovations and repairs are expensive improvements to your home that should be covered by your homeowners’ insurance policy. Repairs that involve fixing or replacing your roof can increase the value of your home. Adding space to your home will also add value. Any type of home improvement that adds space or improves the aesthetics of your home should be considered, and your policy must be adjusted to cover these additions. Even small repairs can affect how your homeowners’ insurance is calculated.
What Is Usually Covered by My Homeowners Insurance?
Traditional homeowners insurance covers four main categories when it comes to insurance. These include
- your home’s structure,
- other buildings on the property,
- liability insurance, and
- personal property coverage.
These different forms of coverage work together to provide you adequate protection for your home and other belongings. As you become more familiar with your coverage, you will be able to determine how much you need against how much you already have. In some cases, you may be able to reduce the amount of coverage you have.
Knowing what affects your homeowners’ insurance will help you determine when you need to upgrade or downsize your homeowners’ insurance policy. At Schwab Agency, our team of professional experts is always there to help you if you have questions or concerns about your policy. We can help you figure out how much insurance you need so that you have the right amount of coverage. Contact us to get started today!