If you are a homeowner, you might need home insurance depending on state requirements and what your lender requires. The topic of insurance can be confusing. Blue Hen Insurance LLC is happy to assist Middletown, DE area homeowners. Here are some answers to some of the most frequently asked questions about home insurance.
Frequently asked questions about home insurance
What is the 80/20 rule of home insurance?
As a rule, most insurance companies require you to have at least 80% of the total replacement cost of your home insured.
What is not covered by home insurance?
Although home insurance covers many things, there are some things it does not cover. These include termite damage, animal damage, earthquake damage, water damage, and normal wear and tear.
What factors determine the cost of home insurance?
Home insurance can be expensive depending on a lot of factors. Where you live can determine whether your insurance premium will be cheaper or more costly. If you live somewhere with higher risks, such as flooding, earthquakes, tornadoes, etc., you will most likely have a higher premium because of the added risks of damage.
The replacement cost of your home is another factor that plays into the cost of your insurance premium. These costs include the materials, number of rooms, and local rebuilding costs.
What two things can you do to reduce the cost of home insurance?
Depending on the age of your house and the insurance company, home improvements can reduce the cost of your premium. If you own an older house, newer wiring, and a new roof can significantly reduce the cost of your insurance.
Another thing you can do to reduce the cost is to bundle your car and home insurance together. Bundling can get you a significant discount on both your vehicle and your home.
Reach Out To Us
Contact us at Blue Hen Insurance LLC in Middletown, DE for more insurance information.