Your home may be the most valuable investment you have made so far, and any wise investor takes certain measures to protect their investment. Though not required by law, homeowners insurance and coverage protects your investment in case disaster strikes.
To determine a coverage limit that best suits your home, consider the following.
Your personal home insurance possessions
Homeowners insurance companies set the amount for covering personal belongings at 75% of the structure. The coverage is offered for not only possessions within the home but also possessions outside the home. Make an inventory of your possessions, from appliances, furniture, and sports equipment. List down the make, model, purchase date, and estimated price. Take videos and photos. Coverage for jewelry goes up to $2,000. In case any of the stuff is damaged or stolen, your insurance will replace or repair them. Note that this kind of cover does not include your car.
Coverage for the structure of your home
Home insurance and coverage covers your structure from damage resulting from
- Earthquakes
- Floods
- Weight of snow, ice, and sleet
- Damage caused by aircraft or vehicles
- Vandalism
Most disasters cause total damage to your home, and this requires you to rebuild your house. This is a very expensive affair. Estimating the rebuilding cost is essential when choosing an insurance coverage. When calculating the cost of your home take into account the age of the structure, fire protection rates in your city and the local rebuilding cost. Keep in mind that should your house be destroyed, your homeowners insurance company won’t pay for the rebuild in its entirety especially if the structure of your home is old.
Approximate additional living expenses
Choose a coverage limit that takes care of you in case your home is damaged, and your family has to live somewhere else temporarily. Talk to your agent to include this consideration in the cost estimate.
Liability insurance coverage
This portion of the homeowners insurance and coverage covers you in the event that you hurt someone accidentally, your pet bites someone, or your child destroys a neighbor’s property. Pick a limit that equals the total of your valuables. Liability insurance is the cheapest portion of your policy.
As you shop for the right homeowners insurance and coverage, consider your budget and unique needs. The amount coverage amount can skew higher or lower depending on the state you live. Enlist the services of a homeowner’s insurance company that is reputable and has great customer service.
