How do you know if you have enough Homeowners Insurance

Having adequate insurance is one way to obtain a peace of mind, insofar as you can lessen your worrying about protecting all of your investments, properties and family members. When we ask ourselves how do I know if I have enough insurance coverage?, what we really want is assurance that if we die, or are involved in an accident that lessens our ability to retain, or obtain, gainful employment, we want to make sure that our families are taken care of financially. Insurance gives you that peace of mind, and allows you to carry on with less stress and worries about your family’s ability to survive if something unforeseen were to happen to you.

Whether you buy insurance yourself, or have your employer provide all of your insurance requirements through payroll deductions, your insurance policy will have limits on payouts for all of the different insured scenarios where insurance is beneficial. With that in mind, how do you know that you have the right amount of homeowner’s insurance?

If someone were to injure themselves seriously while visiting your place of residence, and the injury was caused by defective materials or craftsmanship in your home or an addition to your home, then you could be sued. You could be held responsible for the financial difference between what your insurance policy covers, and the amount of the civil litigation or arbitration amount awarded to the injured party.

Problems can start to arise when the injured victim claims permanent lessening of enjoyment of life, loss of potential future earnings (they were, of course, going to become executive vice presidents, after all), and anything else that their attorneys can dream up that would push the monetary award skyward. How do you know if you have enough homeowner’s insurance? Basically, you will need at least $2 Million per occurrence for personal injury or death of yourself, your family members or anyone stepping on your property. You should also have full replacement cost coverage for all of your belongings, as well as structural coverage on your dwelling(s).

Before applying for your first homeowner’s insurance policy quote, you must be aware of what indemnity and liability are, and what events may lead to insurance claims being filed against you, so that you may insure yourself against those variables (like a postal worker slipping on your icy porch) when you agree to a homeowner’s insurance policy. Knowing the basics of homeowner’s insurance should help you when you do meet the insurance agent. The best way of getting a homeowner’s insurance quote is to have them come to your residence, and explain every detail of each instance of the policy, and what coverage you may need for any eventualities.

How do you know if you have enough homeowner’s insurance? As long as all of your assets are covered, the home is covered for any damages, like from hurricanes and tornadoes or kids playing hockey on the street (broken windows, etc.), home invasions and people getting hurt on your property, you should be fine. As you improve your assets, get better electronic entertainment and furniture, more clothes or more children, you should increase your benefits and decrease your deductibles accordingly. Each year, you should re-negotiate your policy with your insurance provider, to lessen the payments, even if just by a little.

When talking face to face with the insurance agent, the possibility of misunderstandings are greatly reduced, and the homeowner will be given complete peace of mind with regards to being properly covered with enough homeowner’s insurance. So, what are you waiting for? Pick up the phone and call at least three insurance providers, and have them come to your residence for a homeowner’s insurance quote.

You can also get quotes for complete insurance coverage, where home, auto and life insurance are bundled together in order to reduce the overall costs. What cost is peace of mind worth? Don’t wait until it is too late, get proper homeowner’s insurance as soon as you buy your home, and keep increasing your coverage as your family grows.