5 Things to Know About Homeowner’s Insurance in Lancaster SC

If you have a homeowner’s insurance policy, it’s important to understand what you have and get the most coverage for the price. So, what are the 5 things to know about your home insurance in Lancaster SC?

 

Know Your Exclusions

The worst time to figure out something is not covered is at the time of the claim. Policies will always have some sort of exclusions but understand what those are. For instance, most policies do not cover floods or earthquakes. You need to add those to your coverage or purchase a separate policy. These are not inexpensive but it may be something you need to take a look at.

Know What’s the Difference Between Replacement Cost verses Actual Cash Value

I’m going to keep this on the simple side. If your policy pays based on actual cash value, it pays based on the value of that item that now may be several years old. If you have replacement cost, it will pay you what it costs to replace that item today. Example. Let’s say lighting strikes near your home and it messes up your tv. If you have actual cash value and that tv was ten years old, then the carrier will pay you based on the depreciation of that ten year old tv. It’s not worth a lot. If you have replacement cost, then it will pay you to go and replace that tv with a new one at the cost of one today.

Shop Around for Coverage

I am little bias here. Always find you a local insurance agent that you can get to know and who understands your needs. If you are getting a mortgage loan and you need to escrow you homeowner’s insurance, you don’t have use the carrier the mortgage company recommends. Sometime they will have an inhouse team to try and get you to carry your coverage through them. An out of area company may not serve you the way you need to be served. Regardless, use someone you feel comfortable with and is a place you can walk into. An independent agent has choice and that choice can only benefit you.

Ask Your Agent About Discounts

Insurers love to bundle policies to offer additional discounts. If you can place your home and auto insurance with the same carrier, you generally get a better overall rate. Also, if you add a security system to your home or you have recently replaced your shingles, let your agent know. Those are two additional discounts you may available to you.

Review Your Home Insurance Needs Every Year

Just like your tax accountant, check with your insurance agent at least once a year to make sure your policy provides adequate coverage. If you add an additional room to your home or have done some recent upgrades, these things will add value to your home thus increasing your replacement cost. As mentioned earlier, it’s important to make sure your policy pays based on replacement cost.

If you are looking for an insurance agent in Lancaster SC or the surrounding area, give us a call today at 803-286-1161.

 

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