Homeowners Insurance in Athens, AL
A standard homeowners insurance policy insures the home itself and the things you keep inside. By having homeowners insurance, you can financially protect yourself if there’s an accident. Contact our agency today to learn more about homeowners insurance or to get a no-obligation quote.
What Is Homeowners Insurance?
Home insurance is a package policy, which means that it covers damage to your property after a covered loss and your liability or legal responsibility for any injuries and property damage you or members of your family cause to other people. There are usually additional coverages or endorsements, also called riders, that you can add to the standard coverages provided by home insurance to ensure adequate protection.
How Do You Know if Your Homeowners Insurance Policy Is Insured to Value?
A home is insured to value when the coverage limit on your policy reflects the full cost to rebuild the structure from the ground up, including labor and materials at current prices. To check, compare your policy’s dwelling coverage limit against a professional replacement cost estimate. Many insurers use valuation tools during underwriting to calculate this figure. If construction costs in your area have risen significantly since your policy was written, your coverage limit may no longer be sufficient, making it worth requesting a coverage review with SOS Insurance Agency.
What Is the Difference Between Replacement Cost and Market Value in Homeowners Insurance?
Replacement cost refers to the amount required to rebuild your home using similar materials and craftsmanship at today’s prices, while market value is what a buyer would pay for your home and land in the current real estate market. These two figures are often very different. A home in a high-demand neighborhood may carry a strong market value while costing far less to rebuild, or vice versa, in areas with high labor and material costs. Homeowners insurance is based on replacement cost, not market value, because the land your home sits on is not at risk and does not factor into a rebuild scenario. SOS Insurance Agency can help you understand which valuation method applies to your policy and whether your current limits reflect accurate rebuild costs.
Do I Need Homeowners Insurance?
While purchasing a home insurance policy may not be mandated by the federal, state or local government, your lender may require proof of home insurance if you have a mortgage. Carrying appropriate homeowners insurance is always a good idea as the policy can help financially protect you if you experience a covered accident or other loss. Without home insurance, you may be left to cover the replacement or repair costs on your own following an incident.
How to Get Homeowners Insurance
If you need a homeowners insurance policy or want to evaluate whether the coverage you have is adequate, we’re here to help. Give SOS Insurance Agency a call today to get started or request your free quote now.