Why You Need Insurance

Protecting your home investment is important. But do you know what type of insurance you might need? Make sure to contact us and we can advise you on the different types of insurance and what we would recommend. The financial safeguard against disaster, including property loss and injuries to third parties, is homeowners insurance.

Why a Standard Homeowners Insurance Policy Covers

This helps to pay for structural damage to the home. This will help to pay for the repair or rebuild the home if damaged by any of the disasters listed in the policy. It will not include flood damage unless it is purchased separately. Do not base rebuilding costs on the price you paid for the home, nor include the price of the land when estimating coverage. You will need an insurance amount sufficient to rebuild at the going rate of construction in your area. This amount can be estimated by multiplying the home’s total square footage by the square foot cost of local construction. These numbers can be gathered from building associations, realtors and insurance agents. The loss of personal items can also be covered with an insurance policy. This includes up to seventy percent compensation for furniture, clothes and keepsakes that have been stolen or lost due to disaster. Keep an inventory of possessions and store it safely off-premises. Financial protection against third party bodily injury or property damage you might cause is another reason to get home insurance. Court costs and damage awards are usually covered up to the policy limit. This coverage typically begins at about $100,000, but most experts recommend carrying at least three times that amount. Check into umbrella policies. These provide broader liability coverage and higher compensation limits. This coverage picks up your hotel bills, restaurant tabs, and other miscellaneous expenses should you be forced to live elsewhere while your home is rebuilt or repaired. Prior to purchasing a policy, take time to ask about time frames and the specific limits of what is and is not covered. Homeowner’s insurance policy costs are determined by many factors, such as square footage of the house, neighborhood crime rate, and how prone your neighborhood is to natural disasters. The level of coverage also makes an impact.

No matter what you are looking at for insurance for your home, make sure to contact us. We can help advise and recommend the best policy for you and your family.