Trying to figure out what you need for homeowners’ insurance is a new experience for the first home buyer. Most home owners do not have much of a background in insurance terminology, and this could make it difficult to focus on the bigger issues. These examples may help you to narrow down some of the more important aspects of homeowners insurance Maine.
Basically, you should insure your home for the total cost of rebuilding. You could think of the coverage amount as what it would cost to rebuild your home tomorrow. Coverage amounts should not be based on the remaining balance on the mortgage. They also do not need to include the cost of the land where your home is located.
Check your policy over carefully, so you have a clear understanding of what is covered and what is not. For example, homeowner insurance policies generally cover theft, fire and some weather related damage. Most general policies do not include flood damage or earthquake coverage – which can be purchased as separate policies.
It may be possible to get reduced premiums and thereby save money by making changes to your homeowners policy, such as by increasing the deductible amount. Covering vehicles with the same insurer as the one you use for your homeowners policy may result in a multiple policy discount. Other available discounts may include those for being a non-smoking household, or installing security systems or fire alarms.
Remember, your agent is there to help you with homeowners insurance Maine. Feel free to contact your agent for clarifications or to discuss arranging a new policy.