Homeowners insurance: How do I know if I have the right amount of coverage?
Shopping for home owners insurance is an over whelming task but yet it must be done. Your home is the most valuable investment in your life and that of your family. Therefore shopping for protection and the right amount is a great duty. With such a large investment it requires a careful amount of time and research. You will need to know before you start your search what is that you want to have covered in your homeowner’s policy. Please take your time and review all of your needs in case of disaster.
A careful planned list should be compiled listing you property location and each item that you want covered. The list should have first the obvious the house. The basic or standard coverage might not be enough to accommodate you and your family in case of a disaster. The other things that you might want to consider are the items that you want a policy to cover.
Full replacement cost
If your home were destroyed today do you have enough coverage to rebuild your exact same house? You want to only pay the difference after your deduction. Without full replacement cost you will probably end up with a great deal of out of pocket cost. The reason being you were only covered for a set amount and your home appreciated in value.
Your insurance company is only going to pay the maximum amount that you have as coverage. For example if our home is worth a $100.000 dollars that is the amount you will be paid regardless of the home value. Some insurance companies off a guarantee replacement cost this is a little more expensive but it is worth looking into.
If you have personal property and want to make sure that it is covered this should be on your list to discuss with your agent. You want full replacement coverage on your jewelry and other personal items. The amount of coverage for jewelry and other personal items are somewhere between $1,000.00 -2,000.00 if you need more talk to your agent about a personal property endorsement or a floater.
Are you covered for all perils not just the basics but; theft, fire, lighting, vandalism, riots, explosions, and falling air craft parts? It is good to get a very clear understanding of your limits of protection. The experts recommends that you get up to $300.00 and if you prefer additional you can get the umbrella for $1.Million at a cost of about $350.00
This should be very high on your home owners check list. You want to be protected from lawsuits in case someone gets hurt on your property. It only takes one slip of an ankle or a fall could end up costing you a bundle. For this you should get the maximum amount that your insurance company can write for you. Personal liability will also protect you in slander laws suits. Pay for defending you in court not just in your home town but anywhere in the world. This area of the policy covers damages that the pet might do, and property damage that you might cause to others.
If your home was completely destroyed today how much would be needed for you and your family to live until your home is rebuilt. The average home owner’s policy only covers up to 20% of the amount of the policy. For example if your home is only insured for $100, 00 you living expense is $20,000 and that is it. Now what you must decide is that going to be enough for you and your family? In order to know if you have the right amount of protection requires evaluating your circumstances and decide from that point.