What Is Homeowners Insurance?
Now that you own a home, you will need to purchase homeowners insurance. Carrying insurance not only helps protect your home from damage and disaster, but it also protects the lender. The home serves as collateral for the loan, so it is important to the lender that the home maintains its value.
Your lender requires you carry at least enough insurance to completely replace the home if it were damaged in a major event such as a fire or tornado. You’ll also want to cover items inside the home, as well as items located on the property, like detached buildings, garages, barns, etc.
An insurance agent can provide you specific policy details and options to help choose the right coverage for you!
Types of Homeowners Insurance
There are many types of insurance policies available. Coverage depends on your insurance company as well as where you live. Most homeowners purchase a policy that covers damage to a home due to things such as:
- Smoke damage
- Things falling on the home such as trees
- Plumbing and heating system damage
- Personal property and liability
Standard policies typically cover at least 80% of the cost of replacing the home. Discuss your options with a qualified insurance agent to make sure you have the right coverage.
You can also add coverage at an additional cost for items that are not included in your policy. These add-on items are called “riders.” Riders can be added for disasters such as flooding and earthquakes, as well as areas of the home that may be used for a home business and houses under construction.
Save Money By Bundling Your Home and Auto Insurance Policies
With Nationwide Insurance®, combining your home and auto policies could save you up to 20%.*
Plus, you’ll save with an additional discount you get just for being a Wright-Patt Credit Union member. Learn more or call 1-866-633-5747.
*Nationwide may make a financial contribution to this organization in return for the opportunity to market products and services to its members or customers. *Savings compared to stand-alone price of each policy, based on national customer data from November 2010. Products Underwritten by Nationwide Mutual Insurance Company and Affiliated Companies. Nationwide Lloyds and Nationwide Property & Casualty Companies (in TX). Home Office: Columbus, OH 43215. Subject to underwriting guidelines, review, and approval. Products and discounts not available to all persons in all states. Nationwide, Nationwide Insurance and the Nationwide framemark are service marks of Nationwide Mutual Insurance Company. ©2011 Nationwide Mutual Insurance Company. All Rights Reserved.