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Why do I need home insurance?


You need home insurance for several reasons:

  1. Protection: It covers damage to your home and belongings from events like fire, theft, or storms.

  2. Liability: It safeguards you if someone gets hurt on your property or you damage their property.

  3. Mortgage Requirement: Lenders often need it to protect their investment in your home.

  4. Financial Security: It provides funds to repair or rebuild your home after a disaster.

  5. Peace of Mind: Having coverage alleviates worries about unforeseen accidents.

  6. Living Expenses: If your home is uninhabitable, it helps cover temporary housing costs.

  7. Belongings: It replaces stolen or damaged personal items like furniture or electronics.

  8. Customizable: Policies can be tailored to your needs for better coverage.

  9. Legal Compliance: It might be legally required in certain areas or situations.

While an extra cost, home insurance offers valuable protection and financial support in unexpected situations.

What's the difference between actual cash value coverage and replacement cost value coverage?

Actual Cash Value (ACV) coverage and Replacement Cost Value (RCV) coverage are two different methods used to determine the amount of compensation you receive in the event of a covered loss under an insurance policy, typically for property damage. Here's the difference between them:

  1. Actual Cash Value (ACV) Coverage: ACV coverage takes into account the current market value of the damaged property, factoring in depreciation. Depreciation considers the age, wear and tear, and overall condition of the item. When a claim is filed, the insurance company reimburses you for the cost of the item at its replacement cost, minus depreciation. This means you might receive less money to replace the damaged item with something similar, given its decreased value over time.

  2. Replacement Cost Value (RCV) Coverage: RCV coverage, on the other hand, provides compensation to replace the damaged or destroyed property with a brand new item of similar kind and quality, without factoring in depreciation. The insurance company will pay the cost of purchasing a new item at today's market prices. RCV coverage generally provides higher compensation than ACV coverage because it doesn't consider depreciation.

Does my roof affect my homeowners insurance?


In short, yes! Your roof protects your home so the better your roof, the better your homeowners insurance rate. Your roof's age, condition, material, and even shape can have an impact on your rate. Click here to view what one of our carriers has to say on the subject. 

Do I need insurance if I rent instead of own?

Yes, even if you're renting, having renter's insurance is highly recommended. It covers your belongings, provides liability protection, and helps with additional living expenses if your rental becomes uninhabitable due to damage. It's affordable and offers valuable financial security. Just like homeowners insurance, renters insurance can be customized to cover your needs within your budget. 

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