Every homeowner needs an insurance policy to protect their home, but every person also needs a custom policy. If you are buying or house or looking for a new insurance company, you should have four main goals for your policy. These four goals help you purchase a plan that provides a sufficient amount of coverage and protection for you. Here are the four things you should aim to get in a homeowner's insurance policy.
1. Enough Money to Rebuild Your House
The main objective of your policy should be to have enough money from it to rebuild your home. When choosing the amount of coverage you have for your home's structure, you might want to start by determining how much it would cost to rebuild it. If you lost your house to a covered peril, it would likely cost more to rebuild it than the amount you paid for it. When you determine the costs for rebuilding the house, choose that amount as your dwelling coverage.
2. Enough Money to Replace Everything in Your Home
The second thing to consider is the value of everything you own that you have at your house. Your policy should include enough coverage to replace every item you own if you lost it all to a covered peril. When you add up the value of everything you have, choose that amount or more as your personal belonging coverage. By doing this, you can feel safe knowing that you have plenty of coverage for everything.
3. Enough Protection to Cover Accidents at Your House
The third objective is to choose enough liability coverage for accidents that might occur at your home. Liability coverage protects you from lawsuits that people may file against you if they get hurt while visiting your property.
4. Protection for Times When You Must Temporarily Move Out
Finally, you need protection for situations when you might have to temporarily move out of your house. If you lose your home to a covered peril and need to rebuild it, you will need insurance coverage to compensate you for your extra expenses. Insurance companies call this additional living expense (ALE) coverage, and it is a vital type of home insurance coverage for all homeowners.
When you call for a homeowner's insurance policy, make sure it offers these four things. You can learn more about your options by speaking with a local home insurance agent.Share