Tips for Estimating Homeowners Insurance Coverage
Can you relate? Do you need Christmas tree insurance? 😉
You may not be able to actually insure your tree, but you can insure your home! Estimating Homeowners insurance coverage is easier than you think! Here are some tips to help you get a good idea of just how much protection your home may need:
Estimate the Cost of Rebuilding Your Home
First, consider getting a replacement cost estimate, which estimates only the cost of rebuilding your structure. That estimate will have nothing to do with the price you paid, your mortgage size, or land value. You may also want to keep in mind the age of your home and construction costs in your area. Remember, many older homes may not be up to current building codes and this can increase rebuild costs. Labor and material costs can also vary widely from area to area, so always keep your location in mind.
Estimate the Value of New or Unique Features of Your Home
If you’ve recently renovated or upgraded features of your home, its important to include the value of any remodeling in your estimate. It may cost more to replace or rebuild new, custom, or unique features or anything built with specialized labor or materials.
Estimate the Value of Your Personal Belongings
Your replacement cost coverage will help with property that is damaged, stolen, or ruined – but only up to your policy limits. So, it’s very important to take and inventory of your possessions and their value. Record and photograph furniture, electronics, appliances, tools, and other similar items. Also include everyday things like clothing, linens, dishes, and athletic gear, and anything in storage. Try to be as detailed as possible and include any serial numbers, purchase dates, and even receipts if you have them.
Estimate the Value of Prized Possessions
A basic Homeowners policy will cover things such as fine art and jewelry, but only up to a fixed amount. You may want to also consider a personal articles floater that can provide increased coverage.
Estimate the Liability Coverage You Want
The more assets you have, the more vulnerable they are if you are sued. Consider both your net worth and just how much protection you want to determine your liability limits. You may also want to invest in a personal umbrella policy. This will extend your liability coverage past your other underlying policies, up to as much as $10 million!
Estimate Additional Living Expenses
Estimate additional living expenses. Make sure to think about how much it may cost to live elsewhere while your home is repaired. This factor is often overlooked when choosing coverage which creates a large gap in your coverage
Want a Homeowners insurance quote? Give us a call at 661-542-7007!
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