FAQs About Your South Carolina Homeowners Insurance
Posted in:
Home Insurance Articles
By: Cliff Berman
Posted on: May 11, 2009 - 10:16:21 AM
FAQs About Your South Carolina Homeowners Insurance
Shopping for homeowners insurance can be a shocking experience if you don't know what you're looking for.
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1) Why do I need homeowners insurance?
If there's one question that almost every new homeowner asks before signing on the dotted line for their South Carolina homeowners insurance policy, it's why they need to bother with the expense in the first place. After all, it's not like your house can jump on the highway and have a house-wreck on the way to work in the morning!
Your house is one of the most expensive purchases you're ever going to make in your lifetime, surpassed only by your children's college education. A single fire or a good, strong windstorm can set your bank account back hundreds of thousands of dollars-and that's not even mentioning the role that homeowners insurance plays in protecting you from lawsuits and enterprising thieves with more lock picking skills than sense!
2) What does my liability insurance cover?
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Even if your neighbor decides to try figure skating on your A-frame in the middle of winter when you're not home you're liable if they fall and hurt themselves. Don't leave your financial future to chance and the belief that your neighbors would never do anything that crazy. |
3) What's the difference between cash replacement value and actual value?
One of the trickiest questions that's going to pop up when you're buying a South Carolina homeowners insurance policy is going to be how much homeowners insurance you need. Obviously you want to have enough to replace your personal possessions if they're damaged or stolen, but how much should you insure your house for? Thus begins the debate between cash replacement value and actual value.
Cash replacement value is the amount of money it's going to cost you to rebuild your home using similar materials and technology. Actual value is the appraised value of your home, taking depreciation into consideration. Nine times out of ten you're going to be better off asking for the cash replacement value of your home. You might end up paying a little more in insurance premiums each month, but it's going to pay off the first time you have to file a claim.
4) How much does it cost?
There are going to be many, many factors that affect how much you're going to pay for your homeowners insurance. Your job, your age, your credit score, where you live, what your house is made of, your safety and security features and many other tiny factors are going to play a major role in evaluating your premiums. The good news is, these are the exact same factors that are going to help you score discounts that shave 10-20% or more off your insurance cost. Talk to your insurance agent.
5) Where do I go to buy South Carolina homeowners insurance?
This is a tricky one. Finding the right homeowners insurance policy for your home is a little more difficult than just walking into the nearest Wal-Mart and grabbing one off the shelves. In the past, homeowners have spent hours on the phone with insurance agents trying to get the best deal possible on their insurance policy. The Internet has changed all that.
How you shop for your insurance policy is, of course, up to you, but we recommend that our customers start by shopping for homeowners insurance online-and we're not just saying that because that's where we're doing business! By going online you can find many quotes in a short amount of time to give you an idea of what your homeowners insurance should cost and what company's going to give you the insurance coverage you need at a price you can afford.
