Homeowners Insurance Facts
The most common type of home owners insurance is property coverage for your house and property in the form of replacement coverage. This coverage is usually equal to what the cost of completely rebuilding your home in the event of a total loss.
This should NOT be confused with the market value of your home. Your market value of your home may be $250,000 because of its location, but to rebuild your home may only cost $150,000.
This coverage is preferable to a homeowners' insurance which reimburses for losses only on the basis of actual cash value. The problem with this is it takes into account depreciation on the house from the time it was new and depending upon the age of your home, this may not cover all your losses in the event of a catastrophic loss.
Why have Homeowner Insurance?
For most people, the purchase of a home is the single biggest investment of their lifetime. Most of suffered the loss of their home would not be able to afford to pay off existing mortgages on the home while paying the cost of building a new home if they were under insured, or uninsured. Just think of your house burnt to the ground, and you had no insurance, what would happen? You may have $500 - $2000 a month mortgage payments, a large balance on a mortgage, and STILL have to pay the cost of rebuilding or buying ANOTHER home.
Don't get caught without this valuable insurance! And don't overpay for the coverage you need. Want to have insurance companies compete for your business? Get 5 quotes online for homeowners insurance by
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