Home insurance protects what you own, whether that’s a house, condo or an apartment. It also protects you if you’re renting. Insurance protects you from loss or damage – whether you’re a victim of fire, flood, other natural disasters, or theft.

There are many insurance policies from which to choose. Deductibles vary, coverage varies. Here are some things you should consider before choosing a policy:

What’s actually covered?

Policies cover your home, its contents, you, your spouse and children. It also covers kids away at school. If you have anyone else living with you like a friend or family member, be sure to let your insurance rep know. If anything happen that you can’t live in your home because of an insured loss, your policy also covers additional living expenses.

How much will I need?

That will depend on how much your home is worth along with all the personal property in it. One of the best things to do is to make a list of all your valuables with accompanying photos if possible. That way, your insurance agent can better guide you in terms of your policy.

How is my premium calculated?

Several factors come into play here. Replacement cost depends on the size and contents of your home. Other factors include:

  • Location. Do you live in an area that frequently experiences break-ins? If so, you may find you’ll need to pay more;
  • Are you near a main water source like a fire hydrant or a fire station? That’s a good thing;
  • Wiring, heating and plumbing. The newer, the better. And forced air gas or electric heating will keep your costs lower than oil heating will;
  • Do you have a security system? Fire alarms in proper working order? What about a swimming pool or other buildings like a garage or shed? All of these play into premium costs.

By the way, if you’re renting, you should have insurance to cover all your furnishings and personal belongings.Tenant insurance also gives you personal liability coverage in case someone hurts himself while visiting you or if your place accidentally gets damaged.

Since not all policies are the same, it’s important to talk to people who can answer your questions like the professionals at Northwood Mortgage. Sit down with us and talk about your personal needs in terms of your home or property. We’re there to help!