If you’re buying a home, you’ll need to look into homeowners insurance. Homeowners insurance allows you to protect your home and all your personal property. It’s especially useful if your house burns down or if you have other damage to your property so that you don’t have to worry (as much) about payments and can focus on taking care of yourself and your family as needed.

Here’s all you need to know about homeowners insurance and whether or not it’s the right move for you.

1. Figure out the coverage you need. Before you decide on a policy (make sure you shop around to find out what’s the best fit for you!), you’ll need to determine that type of coverage that makes most sense for you and your home. If you get a better coverage plan, then you’ll have to pay less out of pocket if a disaster does occur or if your property is damaged. Some lenders might determine how much coverage you need to get and might encourage you to get insurance that covers the cost of your mortgage.
2. Compare and contrast deductibles. Your deductible is the amount of money that you have to pay out of pocket for each claim and applies to coverage on the home and your personal property. When you look into various policies, make sure you’ll be able to afford what the deductible is if you were in the position of making a claim. Sometimes, depending on the policy, you can pay more to have a lower deductible or they might entice you for a lower deductible by offering a bargain on the policy.
3. Consider replacement cost versus actual cash value. You can insure your home and personal possessions for either a replacement cost or actual cash value. Replacement cost is the amount it would take to replace or rebuild your home or pay for the damages, without considering deductions for depreciation in value. If you go this route, you’ll want to do at least 80% of replacement value. Actual cash value is the amount it would take to repair or rebuild after a depreciation in value.
4. Look into discounts. Depending on the state you’re in and the policy that you’re looking into, you might be eligible for certain discounts or benefits with your policy. For instance, if you insure your car and your home through the same company, they might offer a package deal.