Insider Secrets You Must Know Understanding Homeowners Insurance Coverage

Understanding Coverage Limits and Deductibles

When selecting a homeowners insurance policy, it's crucial to understand the coverage limits and deductibles. Coverage limits are the maximum amounts your insurance will pay for a covered loss. It's important to ensure that these limits reflect the cost of rebuilding your home and replacing your belongings. Deductibles are the amounts you pay out-of-pocket before your insurance kicks in. Choosing a higher deductible can lower your premium, but it's essential to ensure you can afford the deductible in the event of a claim.