Four things that some people don’t realize about home insurance

Homeowners in Alabama can meet their home insurance needs with our assistance at Robinson Insurance Group LLC. It’s important for homeowners to have enough information about their insurance needs and coverage options.

The following are four things that some people don’t realize about home insurance:

Mortgage lenders require borrowers to have home insurance. 

Homeowners are sometimes under the misconception that they can choose whether to buy insurance. However, any homeowner who is still paying off a mortgage needs to have home insurance. 

Mortgage lenders typically handle payments on borrowers’ home insurance through an escrow account. 

You can choose between replacement value and actual cash value coverage.

Replacement value coverage covers the total costs of rebuilding your home if it is destroyed. On the other hand, actual cash value coverage compensates the homeowner for the market value of their home. 

Ideally, you should choose replacement value coverage so that you’re not compensated for less than the full value of your home due to depreciation. 

Home insurance policies include liability protection.

Some homeowners don’t realize that home insurance doesn’t only cover your home’s value when your home becomes damaged. Home insurance also protects you from liability expenses if you face a lawsuit because of an accident or injury in your home.  

Flood insurance is not included in a standard home insurance policy.

Home insurance won’t include coverage for flood damage to your home. You’ll have to purchase flood insurance separately if you want to be covered by flood damage. 

Reach Out To Us

At Robinson Insurance Group LLC, we’re here to answer questions you have about covering your home with the right insurance policy. Call us for a quote on a home insurance policy for your home in Alabama.