You know you need homeowner insurance, but if you don’t understand the ins and outs of the often-complicated policies, you’re not alone. The experienced agents at Mountcastle Insurance in Winston-Salem, NC, want to help. They’ve answered a few of the most common questions regarding homeowner policies so you can better understand your coverage options.

4 FAQs About Homeowner Insurance

1. Is Home Insurance Required by Law?

While your state or city may not require you to have a homeowner’s policy, your mortgage company probably will. However, even if you’re not obligated to have a policy, it’s worth considering making the investment. This insurance will protect your home in the event of damage or theft and keeps you from having to pay the full cost of repairs for replacement items.

2. What Does an Insurance Policy Cover?

The exact coverage will vary from policy to policy, but most will protect your home from general property damage and theft, as well as provide coverage for liability concerns if anyone gets injured at your home. However, most policies will not protect your home from damage due to natural disasters like flooding or tornado-related wind damage. For full protection, you may want to purchase additional threat-specific insurance.

3. How Much Insurance Do I Need?

The last thing anyone wants to do is underinsure their home. To determine how much insurance you need, consider the current value of your home, the personal belongings you would need to replace if your home was destroyed, and the amount of liability coverage you want to have. If you’re still unsure of the right amount of coverage, speak with your insurance agent.

4. Can I Deduct the Cost from My Taxes?

Typically, the cost of homeowner insurance cannot be deducted from your taxes. However, some landlords or homeowners who work out of a home office may be able to deduct a portion of their premium costs as a business expense. Speak with a tax preparation specialist before attempting to deduct any of your premium costs.

Whether you’re looking for an updated personal insurance quote or want to bundle your homeowner and auto insurance, the dedicated agents at Mountcastle Insurance can help. Learn more about their services by visiting their website, and call (336) 777-8500 to schedule an appointment today.