Let’s talk home insurance. How do you know if you have enough and how much is too much? Coverage for such a large item can be overwhelming and there are a lot of different types of policies and policy add-ons to choose from. Your insurance provider can help you make these decisions but it’s good to at least have an idea of what you need.
What Does Home Insurance Cover?
Your home insurance will cover costs associated with property damage, destruction and theft. Most often damage to a home is weather related, from fire or theft. But your homeowners policy can also cover things like small accidents that take place on your property or if your dog nips the neighbor. It can cover both the exterior and interior of the home and your possessions. There are some exclusions, for example, flood insurance is always handled separately. But for the most part, homeowners insurance will cover the cost of a new roof or a whole new house if needed, but only if you have enough coverage and the right type.
How To Determine How Much Home Insurance You Need
In any given year only 6% of homeowners make a claim, these are high dollar claims however when you are dealing with property damage to a home. Insurance is one of those monthly costs you dread paying but if you ever need it then you are sure are glad to have it! A fire could leave you homeless and if you don’t have insurance you will be left with absolutely nothing. If you carry a mortgage on your home, your mortgage company will usually require you to have homeowners insurance that covers at least 100% of the replacement cost of your home. That means that in the event of total destruction, you could rebuild your home with a similar quality. Your insurance agent will use software to help calculate the replacement cost and it factors in age, size, materials, labor, cost of living, cost of construction and more.
Most insurance companies will recommend that you get more than just the replacement cost of the home though, because you also will need all new appliances, furniture, electronics and personal belongings. You will want to make sure you have enough coverage for the important items inside your home as well. If you have any high dollar items like jewelry or antiques then you may need a separate policy to protect these items. Reviewing your policy at least once every few years can help make sure you are carrying enough insurance at all times.
Contact us for a Claremore homeowners insurance quote at (918) 341-2056 today!