Your house is not just a roof over your head. It is your family’s home, and holds those things you value and worked hard to acquire. It is also one of the biggest investments many people make. Let us help you evaluate your situation to make sure your homeowner’s insurance policy will truly protect your family’s financial security.
What is typically covered under homeowners insurance?
Most policies provide four basic types of coverage:Structure, personal belongings, liability protection, and additional living expenses in case of a need to vacate.
There are some risks that are not covered by a standard homeowner’s insurance policy. These may include flood, earthquake, coverage for high-value belongings, and other risks. We can add endorsements – and in some cases separate policies – to cover these risks.
Tips on Calculating the Right Amount of Homeowners Insurance
1. The Structure of Your Home
You need enough home insurance to cover the cost of rebuilding your home at current construction costs. This does not include the cost of the land, and you should not base your rebuilding costs on the actual price you paid for your home. We can help you calculate the right the right amount.
2. Your Personal Possessions
To determine if you have enough coverage for your personal possessions, you should conduct a home inventory. Compile a list of everything you own and information related to the cost to replace these items if they were stolen or destroyed by a disaster, such as a fire. For free online home inventory software, visit www.KnowYourStuff.org.
3. Additional Living Expenses
This is a very important feature of standard homeowner’s insurance policy. This coverage is for the cost of additional living expenses if your home is damaged and you have to live elsewhere during repairs. It pays the additional cost of temporarily living away from your home if you can’t live in it due to a fire, severe storm, or other insured disaster. It covers hotel bills, restaurant meals, and other living expenses incurred while your home is being rebuilt.
4. Liability to Others
This part of your home insurance policy covers you against lawsuits for bodily injury or property damage that you or family members cause to other people. It also pays for injuries to others caused by pets. This coverage will pay for both legal defense costs and any damages a court rules you must pay.