What is home insurance?
How much home insurance do I really need?
Can I purchase less insurance than my full mortgage amount?
What is a deductible?
What is depreciation?
I just renovated my home. Should I tell my insurance company?
Will my home insurance cover me for earthquakes?
Will my home insurance policy cover damage caused by flood?
What is flood insurance?
Is flood insurance legally required?
What is home insurance?
Home insurance protects you financially from losses that can arise from the house, apartment, townhouse, or condo you own or rent. Home insurance may pay to replace all your belongings after a fire, for example, or pay for medical expenses for someone who's injured in your yard. Although home insurance is not legally required, most mortgage holders require that homeowners purchase insurance before they'll lend them money. For everyone, home insurance provides important peace of mind that should the unthinkable happen, they'll be financially able to rebuild their lives.
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How much home insurance do I really need?
The last thing you need is to find out after your home has been damaged that you don't have enough insurance. But you also don't want to pay for insurance you don't need. To figure out how much insurance you need, you must look at the building and its contents.
If you consult MetLife Auto & Home for a free, no-obligation home insurance quote, we'll help you do all the calculations so you can rest easy knowing you choose the right amount of protection.
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My bank is asking me to purchase home insurance that's equal to my full mortgage amount, but my insurance company says I can purchase a lesser amount and still be adequately covered. Who's right?
Your insurance company is most likely correct. Here's the scoop: Your mortgage reflects the price you paid for your property -- and that price included the cost of your house plus the value of the land. But home insurance covers your house and additional structures, not the land.*
*See policy for restrictions.
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What is a deductible?
It's the amount of the loss for which you are financially responsible. Your home insurance will only pay for the amount of the loss above the deductible. The higher your deductible, the lower your premium because you're taking on more shared responsibility for a possible loss.
Here's how a deductible might work: Your home insurance policy has a $500 deductible. If you have a covered loss, you pay the first $500 to fix or replace the damage. If the repairs cost $400, you pay for everything. But if the repairs cost $1,800, you pay $500 and your insurance company pays the rest.
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What is depreciation?
Depreciation is the decrease in value of an object due to such things as age and wear and tear.
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I just renovated my home. Should I tell my insurance company?
Most definitely. After all, you don't want all your hard work and money to literally go up in smoke, and that could happen if you're underinsured. In fact, most companies require you to notify them within 90 days of the start of any additions or other physical changes if they'll increase the replacement value of your residence by at least $5,000 or 10% of your Coverage A limit (check your policy), whichever is greater.
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Will my home insurance cover me for earthquakes?
Basic homeowners insurance policies don't cover damage resulting from earthquakes. If you are concerned about your house being damaged by an earthquake, call MetLife Auto & Home for more information.
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Will my home insurance policy cover damage caused by flood?
All standard home insurance policies exclude water damage caused by floods. If you think flooding is a possibility in your area, consider purchasing a separate flood insurance policy from MetLife Auto & Home as part of the National Flood Insurance Program (NFIP).
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What is flood insurance?
Flood insurance covers losses to your property caused by flooding.* (These losses are excluded on standard home insurance policies.) Some of the things a flood policy may cover* include:
• structural damage
• furnace, water heater, and air conditioner
• flood debris clean up
• cleaning or replacement of floor surfaces such as carpeting and tile
• cleaning or replacement of personal property
* See policy for restrictions.
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Is flood insurance legally required?
For certain homeowners, yes. If you have a federally backed mortgage on a home in a high-risk flood zone, federal law requires you to purchase flood insurance. Also, if you’ve received a federal grant for previous flood losses, you must have a flood insurance policy to qualify for future aid. To get a flood insurance quote, go to MetLife Flood.
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