Homeowners Insurance

Your homeowners insurance can help protect you from the high costs of repairing or replacing your home after a covered event. It can also protect you from the financial consequences of accidents on your property. 

It’s crucial to get the right homeowners insurance policy for your situation. Talk with the agents at Suburban General Insurance Agency in Fairlawn, New Jersey, about your homeowners insurance options. 

What Does Homeowners Insurance Cover? 

Your homeowners insurance policy covers your home, personal property and other structures on your property. It also provides personal liability coverage if someone is injured on your property or you or a family member is liable for third-party property damage or injuries. 

Depending on where you live, you may also need additional coverage for a potential flood or earthquake. 

Is Homeowners Insurance Required? 

Homeowners insurance is not required by law; however, if you have a mortgage or home equity loan, your lender may ask you to purchase homeowners insurance to help protect your home’s value. If you are in the process of buying a home, your lender may not agree to close on the loan until you provide proof that you have homeowners insurance that meets the lender’s requirements. 

If your home is damaged in a fire or other covered event, homeowners insurance helps make necessary repairs to restore your home’s value, safeguarding your lender from financial loss. 

After you pay off your mortgage, homeowners insurance is not required. A home represents a significant investment, so it’s crucial to maintain coverage even after it’s no longer mandatory. 

What Type of Homeowners Insurance Should I Buy? 

You have three main choices for homeowners insurance: 

• Actual cash value (ACV) insurance covers the cost of the house and your belongings after depreciation. When you make a claim on an ACV homeowners insurance policy, the insurance company provides reimbursement for your losses, but only up to the amount they are currently worth.

• Replacement cost insurance covers the actual cash value of your home and possessions, but it does so without deducting depreciation. This coverage allows you to rebuild or repair your home and replace your possessions at their current value.

• Guaranteed replacement cost insurance provides a buffer designed to protect you from inflation. This coverage pays the costs of repairing or replacing our home and possessions, even if the costs exceed your policy limits. Some insurance companies may offer extended replacement with a ceiling of 20% to 25% more than the policy’s limit.

How Far in Advance Can I Buy Home Insurance? 

If you have signed a contract to purchase a home, now is a great time to start shopping for homeowners insurance policies. There’s still time for you to shop around for the best price and get the coverage you need to help protect your investment. 

You may need to prove that you’ve purchased a year’s worth of homeowners insurance when you close on your home loan. Talk with your loan officer to understand your mortgage lender’s requirements. 

Get Homeowners Insurance To Meet Your Needs 

Homeowners insurance coverage protects one of your most valuable assets. Contact Suburban General Insurance Agency today to get a personalized quote for homeowners insurance.