A home is the largest purchase most people will make in their lifetime. When you make such a large investment, it is important to protect it. When you buy homeowners insurance in Columbus, Ohio, you are taking a vital step to cover damages that might occur in or around your home. Understanding the basics of home insurance can help you navigate the choices and pick what’s best for you.
Your premium is what you pay for your coverage. Premiums vary depending on many factors, including what kind of coverage you have and the size of your deductible. The deductible is the out-of-pocket expense you pay before insurance starts to cover damages or losses. The higher the deductible you have, the lower your premium.
Payouts from homeowners insurance in Columbus, Ohio, typically fall within the categories of actual cash value or replacement value. As the term implies, replacement value is how much it costs to replace items. Actual cash value is how much the lost item, accounting for depreciation, was worth. Many policies can award actual cash value for the property itself while recouping replacement value for individual items.
Whether you pay your premiums directly to the insurance company or include them in your mortgage payment, it is important to understand the coverage they provide. Take the time to go over your policy with your agent until you know exactly what is in it.