5 Things You Need To Know When Buying Home Insurance
When you buy home insurance, there are several things to keep in mind that will save you money and heartache.
Atlanta, in particular, is a great place to live, especially with our affordable home prices (Yes, your house would probably cost 3 times as much up North!). But if you’re trying to rush the home insurance buying process, you may pay for it in the end.
Our prospective clients ask us good questions about buying home insurance. Here are some important ones that may help you out in your search for the best home insurance policy.
1) What does a typical home insurance policy cover?
- The structure of your home (Fires and hail damage are the most common causes of loss in Georgia.)
- Liability protection
- Your personal belongings
- Living expenses in the event of a disaster
2) What’s the difference between Actual Cash Value and Replacement Cost?
Let’s use an analogy:
If your 10-year-old home were like a BMW and it suffered a total loss, an Actual Cash Value policy would replace it with something like a Honda Civic. Whereas Replacement Cost would give you a brand new BMW.
Actual Cash Value is a form of insurance that pays damages equal to the replacement cost of damaged property minus depreciation. Replacement Cost is insurance that pays the dollar amount needed to replace your damaged property without deducting for depreciation, up to the maximum insurance limit on your policy.
Put another way, if you owned a classic 1920’s bungalow in Buckhead and a similarly priced new construction home in Alpharetta, you’d better make sure you’re insuring both to Replacement Cost value. Otherwise, a Spring outbreak of tornadoes could leave you with only enough insurance money to rebuild half of your Buckhead home while your new home in Alpharetta gets fully rebuilt.
3) Is my personal property covered when I travel with it?
A resounding Yes! We know having the world’s busiest airport in our backyard makes it irresistible for Georgian’s to travel, so this is good news for those of you with wanderlust.
Personal property (except property that is specifically excluded) is typically covered anywhere in the world. So that new iPad or iWatch or iWhatever that accidentally got crushed underfoot while running with the bulls in Spain is covered.
Heck, even if the Persian rug you purchased while in Turkey get’s snagged and unraveled in the Hartsfield-Jackson airport escalator, you’re covered. Even if it hasn’t made it to your home yet, it’s still covered.
4) Does my Homeowners insurance policy cover flood damage?
No! No!…and No! Sadly, many homeowners have suffered enormous losses to their personal property because they thought it was included in their Homeowners policy.
Whether you’re in a high risk flood zone near the Chattahoochee River or not, it’s a good idea to have flood insurance.
- Floods and Flash Floods can happen anytime and anywhere.
- Federal assistance may not be enough to cover damage cause by a flood.
- Flood insurance may be more affordable than you think.
Flood insurance isn’t just for property owners living along the coast. Most folks living in Georgia remember the historic flooding in our state a few years ago. Even our neighbors in Nashville, Tennessee suffered from floods shortly after that.
5) What are the benefits of purchasing home insurance in Atlanta through an independent agent?
An independent agent offers personal service that is hard to come by these days, something Southerners expect when doing business.
An agent will shop your home insurance policies with multiple top rated insurance carriers to find the best coverages at the lowest price. Plus, in the event of a claim, it’s nice to hear a familiar voice on the other line who you know will go to bat for you, instead of being introduced to someone you’ve never met before in a time of crisis.
For more information about buying home insurance in Atlanta, call us today at (678) 715-9513 or fill out the form below to get a free home insurance quote.