Georgia homeowners that have a mortgage are required to carry sufficient home insurance to cover their home and the amount that they still owe on their mortgage to the lender. The State of Georgia does not require someone who owns a home, with or without a mortgage, to carry such insurance, but, the prudent homeowner would be crazy not to buy insurance to protect both their interests and the interests of their lender.
There are many different insurance companies that are willing to insure your home. As a consumer, it is up to you to shop around, ask questions and find the best rates for coverage on your house. You can do most of the legwork yourself by contacting different insurance companies and requesting quotes or, you can make it a little easier on yourself by visiting an independent insurance agent that represents a number of different insurance companies. They have the expertise and connections to find you the lowest rates and can help you get the proper amount of coverage. In addition, they might be able to get you a discount by combining your homeowner policy with other insurance you may need such as auto or life.
Rates are determined by a number of different factors. If you live in a high-crime area, your rates will tend to be higher than if you live in a quiet suburban neighborhood. The value of your house will also have an effect on your monthly premiums. Even how far you live from a fire station can have an influence on the amount you pay. Homes made of brick and a tile roof are less susceptible to fire that a wood house with a tar paper roof and thus are a little less expensive to insure.
The contents of your house should also be insured. A basic homeowner’s policy usually insures the contents for up to 50% of the insured value of the house. To get replacement value coverage, you will have to pay a higher premium. If you want to keep the premium down, you can elect to have a higher deductible. Just be careful, because if you select a $2,000 deductible, that means if any damage occurs, the first $2,000 comes out of your pocket.
Finally, if you live in an area that is prone to flooding or it has been determined that you are in a flood zone, you may be required to buy a separate flood insurance policy. Your regular homeowner’s policy does not cover flood damage, but only covers water damage if a pipe bursts inside your house. Flooding from storm surge, heavy rain or severe storms is covered by the Federal Flood Insurance program.
