A Beginner’s Guide to Home Insurance

Purchasing a new home insurance policy can be overwhelming, but there are a few simple things to keep in mind when getting your home insurance from Sharp Insurance & Financial Services.

Doing some research on insurance terms will help. For example:

  • Actual cash value is the cost to replace or repair your property.
  • The deductible will be your out-of-pocket expenses before the company pays.
  • Floater is coverage that is added to your policy for things like antiques or jewelry.

Some things may affect your rate that you can’t control, so it’s helpful to find out how much insurance will cost before you buy a home. You need to consider your home’s electrical system, plumbing, and overall structure. For fires, the Insurance Service Office (ISO) sets your insurance premiums based on its fire protection class of your town or city on a scale of 1-10. This scale is determined based on the city’s water supply and the number of fire stations.

Not everything will be covered by a basic insurance policy so always know what is covered and what isn’t. Keep documentation of the value of important items in a safe place.

In Ashland, KY, you can participate in the National Flood Insurance Program for additional flood insurance. If you work in the mines, the Kentucky Mine Subsidence Insurance Fund offers reinsurance against the collapse of an underground coal mine.

Beware of your backyard as well. Swimming pools, decks, and trampolines can also increase your liability and insurance premiums. Your dog could also affect rates; certain breeds like German Shepherd may lead to higher premiums, and you could be liable in case your dog bites someone.

Remember to review your policy on a yearly basis. To save money, consider raising your deductible or ask about any discounts.

For more information about a specific policy for your home, contact Sharp Insurance & Financial Services, serving Ashland, KY, at (606) 324-0696.