What is a Homeowners Insurance Policy?

Your home is probably the most expensive investment of your life. A homeowners insurance policy is a way to protect that investment - and your family’s future. But how do you go about finding the best policy? You’ve already taken the first step simply by looking for up-to-date information.

There are several parts of an insurance policy. The “premium” is a payment made by you as the insured in return for the “insurance” that would pay if you suffered a loss. If disaster strikes, you’ll file a “claim,” or a request for a payoff to cover the damages. The amount you receive depends on several factors, including your deductible. If you have a $1,000 deductible on glass breakage, you as the insured are responsible for the first $1,000 of the cost with the insurance company picking up the balance. As a rule, the higher deductible results in a lower premium. You must decide whether the higher deductible is worth the cost over the long term.

Both the insurance company and the insurance agent are also important parts of the homeowner’s insurance policy. But if the terms, conditions and premium amounts are written in black and white, what difference can the insurance company and agent possibly make? It’s actually only important when you have a claim - and that’s the moment your insurance is most important to you. Consider the kind of service you get when you’re looking for a quote and information about a homeowners insurance policy. Is that the kind of service you want when you have to make a claim? .