Having the right amount of homeowner’s insurance is critical. Remember when you bought your house? Gathered around the conference table at your lawyer’s office it seemed like you had to sign a blizzard of paperwork. Before you could even get to that point, you had to secure a mortgage and the mortgage company required you to purchase enough home owners insurance to cover the cost of your mortgage. If you bought a house for $200,000.00 and you mortgaged $150,000.00, the bank wanted you to buy a policy worth $150,000.00. Doing this guaranteed the bank would get paid if the house was destroyed. Was that enough home owners insurance to meet your needs? The bank was looking out for their needs; you have to look out for yours.
If you have a tragic fire in your home and the house is destroyed, would your current home owner’s insurance policy cover the cost to replace the house. The general rule of thumb is, the land the house sits on does not get destroyed and that amounts to about 20% of the cost of your home. You will need to have enough insurance to cover the other 80% cost to replace the structures. Your house may have gone up in value since you purchased it. Construction costs continue to climb year after year. You will probably need a homeowner’s insurance quote to find out what your current homeowner’s insurance needs are. A homeowner’s insurance quote should be obtained every year so you can stay current and not find yourself under insured.
When you get your homeowner’s insurance quote, your agent will inform you of things you may not be aware of. You may want a rider on your policy to cover incidents of mold. You may need a special policy for flood insurance. You will also want to know how much your deductible is. The amount of the deductible will determine how much your premium is. Since construction materials vary in cost, your homeowner’s insurance quote should take into consideration the construction of your house now. How many rooms; what kind of flooring; what type of windows; is there a basement, crawl space or slab foundation; is there an attached deck, and so on? All of this needs to be taken into consideration in order to determine replacement value.
As with anything else, it is always a good idea to shop around. Make a few calls or search on the Internet to get several homeowners’ insurance quotes. The better informed you are, the better protected you and your family will be in case of a tragedy. Comparing coverage’s with various companies will give you a good understanding of what your specific needs are. When you find a homeowner’s insurance company you trust, you will rest easy at night, knowing you and your family will not be left out in the cold.
Is it time for you to get your homeowner’s insurance quote. Don’t delay, do it today!