Your home is a valuable and important asset in your life. That’s why it’s so important to protect it with an appropriate home insurance policy. It’s important to do your homework before you purchase a home insurance policy and find a policy that best suits your needs and protects your assets. 

At the JC Demo Insurance Group, we’re devoted to helping our clients find the best home insurance coverage in Matthews, NC. We recommend that clients know the following three things before they purchase a home insurance policy.

What your lender is requiring

Mortgage lenders require that a borrower have home insurance. This protects the lender’s investment in the property. You need to meet your lender’s requirements when you’re purchasing home insurance.

Discuss insurance requirements with your lender and make sure you understand them. You’re going to need to provide proof of insurance to your lender, so make sure you discuss this need with a representative from the insurance company. 

What discounts are available

Home insurance is a significant expense that is going to stick with you long term. Therefore, anything you can do to save money on it and lower your premiums is going to help you out big time financially.

Look into any discounts you can enjoy on your home insurance before committing to a policy. You could enjoy discounts for bundling numerous insurance policies with the same provider or making home safety upgrades, for example. 

What cash value is in comparison to replacement cost

Usually, home insurance policies are designed to be either cash value or replacement cost policies. A cash value policy will cover all repairs or replacement costs necessary on a home minus any depreciation the home has experienced up to the policy limits. On the other hand, replacement coverage does not take depreciation into consideration and therefore compensates the policyholder more.

Although cash value is less expensive than replacement cost home insurance, it generally will not compensate for claims with as much money as a replacement cost policy would. 

If you’d like to explore home insurance policies available in Matthews, NC from the JC Demo Insurance Group, we’re here to help. Contact us with your questions and inquiries to learn more.