Heath Ritenour Reveals The Function Homeowners Insurance

Purchasing a home is the largest purchase that most of us will ever make. It is necessary to have homeowner insurance to protect your home. It is not likely to obtain a mortgage without proof of insurance. However, it is important to point out that not all homeowners insurance policies are created equal. Heath Ritenour, CEO of the Insurance Office of America, reveals the ins and outs of homeowners insurance.

Heath Ritenour explains that homeowners insurance has two main functions. The function is it has a protector of your home. If the home suffers some damage, like a fire, the policy pays for the damage. The second function is that it protects the bank providing the mortgage. Mortgage companies want to make sure their investment is safe.

There are three levels of insurance that homeowners can choose from, according to Heath Ritenour. First, there is the cash value policy. The cash value policy covers the cash value of the home, including personal possessions. However, there is a depreciation deduction. The homeowner will receive the current value of the house as opposed to the original value.

Next is the replacement cost level. The replacement cost is based on the current value of the home, including all possessions. There is no depreciation deduction. If something happens to the home, the homeowner can rebuild or make repairs up to the home’s original cost.

The last level is the guaranteed replacement cost coverage which is the most comprehensive policy a homeowner can obtain. The policy will cover all costs of repairs or rebuild, even if it costs more than the original cost of the home.

Original source to learn more: https://ideamensch.com/heath-ritenour/