Like all insurance policies, your homeowners policy includes limitations on certain types of property, as well as a deductible — which is the amount you pay for each claim before the insurance kicks in.
Let’s say an accident occurs on your property — a visitor is injured after slipping on your icy sidewalk, or you’re cutting down a tree and it falls on your neighbor’s brand new car. Liability coverage helps financially protect you from paying expensive damages for which you are legally liable.
For extra coverage and peace of mind, you can add optional coverage to your homeowners policy. Some optional coverages are itemized personal property, which covers things like jewelry, fine art and musical instruments. Other available options include coverage for identity theft, home day care, home office, equipment breakdown, service line coverage and more. Talk with your insurance agent to decide which coverage works best for your home.
Want to find out about more ways to protect your new home? Keep reading to learn about all your options for homeowners insurance coverage
How Much Insurance Do You Need for Your Home?
There are a number of factors your insurance agent will look at in order to help you create a customized policy that’s specific to your needs. They’ll consider things like the cost to rebuild your home, your home’s age, your claims history and recreational additions, like a trampoline or swimming pool.
It’s important to have enough protection to cover the costs of rebuilding your home and replacing your possessions in the event of the unexpected. Our home insurance checklist details key questions and information to gather for when it comes time to build a policy with your agent. The more you prepare, the better protection you’ll receive.
How High Should You Set Your Deductible?
When considering how much you want to pay, keep in mind you’ll be required to pay a deductible if you file a claim. As previously noted, the deductible is the amount you’ll pay out of pocket before your insurance company steps in. The lower your deductible, the higher your premium. You’ll want to choose a deductible that you are financially comfortable with in the event of a loss. Your agent can help you decide upon the best approach, depending on your situation and budget.
Saving Money on Homeowners Insurance
If you’re looking to save money on homeowners insurance, talk to your agent about the many available discounts. For example, we offer a discount for bundling policies, like home and auto insurance. You could also get a lower rate for having a home security system or smart home technology like Ring.
Head to our homeowners insurance discounts to learn if you’re eligible to save on your home insurance with American Family Insurance.
Need More Information About Homeowners Insurance?
Reach out to an American Family Insurance agent to find the best coverage for your home and needs. They’ll help you create a customized policy that works hard all year round to protect your home and lifestyle.