Here are 7 things you need to know:

1. Get a clue report.

“It’s important for new homebuyers to think of insurance as part of the home search process and to look at obtaining coverage for the home as far in advance of closing as possible,” says Mary Bonelli, a spokeswoman for the Ohio Insurance Institute.

Besides getting a home inspection from a Georgia licensed inspector, request a copy of a C.L.U.E. report. A Comprehensive Loss Underwriting Exchange–is a database that gives insurers access to information on claims that have been filed against the property in the last five years. As a prospective buyer, you can’t get a report from the company, but you can ask the homeowner, who can ask LexisNexis, for a copy. A growing number of buyers are requiring sellers to provide a copy of the report as a contingency for a purchase offer. The loss history will reveal problems that could make insuring the home difficult or expensive. Ask an Affordable Insurance agent about the home’s insurability and for an estimate of the premium.

2. What a Georgia home insurance policy doescover.

A standard Georgia home insurance policy covers the home and your belongings, as well as your liability for any injuries or property damage you, your family members or pets may cause others. It also provides additional living expenses in case you can’t live in the home while it’s being repaired after an insured disaster.

Policies are fairly standard among states. Here are the basic types of home insurance in most states:

• HO-1, a bare-bones home insurance policy that protects against an average of 10 perils.

• HO-2, a broad home insurance policy that covers the house and contents against an average of 16 disasters.

• HO-3, the most popular and broadest home insurance policy. It covers against all perils except those specifically excluded (earthquake, flood, nuclear accident, neglect, war, government action [such as seizure of the property], power failure, building code laws [it would not cover the cost to bring your house up to code, for instance], losses from faulty construction materials, defective maintenance, and faulty zoning.).

• HO-6, a home insurance policy for condo’s and co-op owners. The policy provides coverage for liability, personal property and structural parts of the building you own.

• HO-8, a home insurance policy designed for older homes whose replacement cost far exceeds the property’s value. The policy usually reimburses you for actual value–replacement cost minus depreciation. Georgia has plenty of older homes whose values have depreciated may not qualify for replacement cost coverage.

You need to understand the difference between actual cash value and replacement cost coverage. Actual cash value coverage pays for the cost of replacement, minus depreciation. If your five-year-old car was destroyed, the payout under actual cash value coverage would equal the autos value, considering its age. Replacement cost coverage would pay for buying a brand new auto.

3. What home insurance doesn’t cover.

Standard Georgia home insurance policies don’t cover floods or earthquakes. You must purchase separate policies to get coverage for those disasters. Your lender will require you to buy insurance through the National Flood Insurance Program available through Affordable Insurance Agency if you live in a flood-prone area. Also, in some coastal areas,Georgia home insurance policies exclude damage from wind; homeowners there need a separate windstorm insurance policy to cover wind damage. Earthquake insurance is optional, but recommended in many areas throughout the state of Georgia when the home may be near a fault line.

4. The limits.

Standard Georgia insurance policies put dollar limits on valuables, such as jewelry, furs, fine art, and antiques. You may need to buy a “floater” or endorsement to provide extra coverage.

Always complete an inventory of your personal belongings, working closely with your agent and asking lots of questions to make sure you have enough coverage. I recommend using a recording device to take video of all items in the attic, closets and other areas in case of a loss for proof.

Always consider purchasing additional liability coverage through an umbrella policy if your home has a pool, spa, golf cart, or atv due to exposure.

5. Insure the cost to rebuild, not the market value.

After the housing market imploded in 2008, more than 25 percent of Georgia home owners mistakenly thought they should reduce their home insurance because market values had dropped.

Insure your home for the cost to rebuild it, not its market value. The rebuilding cost doesn’t include the value of land. That amount could be more or less the market value, depending on labor and materials costs.

6. The benefits of shopping with Affordable Insurance.

Shop several companies at one time by calling our Independent Agency.  We not only find who provides the best coverage at the best price, but also represent the insurance companies that have strong financial ratings.

7. You need to update.

Review your home insurance needs with your Affordable Insurance agent every year. Home owners who add bedrooms, bathrooms and amenities is a great example. Unfortunately, if  the insurance policy is not upgraded, and the home is destroyed, the policy will not cover the beautiful home additions.  It only  provides coverage for the modest house since his policy was not upgraded.

When in doubt about your home insurance coverage, check your policy and talk to your agent. It’s better to address questions now than to get caught short after the damage has been done. Please call with any questions you may have regarding your Georgia Insurance Policy at (706)297-0009