Home Security
- 1. Types of Alarms
- 2. Windows & Doors
- 3. Gates & Fences
- 4. Security Lighting
- 5. Lawn Security
- 6. Protecting Your Assets
Self-Protection Products
- Asheville Home Security
- Ames Home Security
- Elyria Home Security
- Dickinson Home Security
- Florissant Home Security
- Chatham Home Security
- Detroit Home Security
- North Shore Home Security
- Black Jack Home Security
- Mableton Home Security
Tips about Homeowner’s Insurance Coverage
Your home is most likely the largest investment you will ever make, and homeowner’s insurance coverage enables you to protect that life-changing investment. When looking into a homeowner’s insurance policy, there are several policy types to research, along with many different factors to consider.
Types of Homeowner’s Insurance Policies
- Cash value policies provide payment to replace your home and possessions minus any depreciation up to the policy limit amount.
- Replacement cost policies pay the actual cost of rebuilding/repairing your home along with the cost to replace your possessions up to the policy limit.
- Guaranteed replacement cost policies pay whatever it costs to rebuild your home as it was before the disaster even if it exceeds the policy limit.
- Extended replacement cost policies pay a specified percentage over the policy limit to rebuild your home. Usual percentages range from 20 percent to 25 percent.
Once you’ve decided on the homeowner’s insurance coverage that suits you best, it is important to also research the specifics. Many first-time insurance buyers overestimate what is covered by their homeowner’s insurance policy or underestimate how much coverage they actually need. Here are some guidelines to keep in mind as you compare homeowner’s insurance coverage options.
- Most standard home insurance policies cover property damage caused by the following scenarios:
- Theft
- Fire and lightning
- Smoke
- Frozen pipes
- Ice and snow
- Human error or pets
- A typical homeowner’s insurance policy will also include coverage for the living expenses you may incur if damage to your home causes you take up temporary residence elsewhere.
- Home damage from an act of war, nuclear accident, flood, earthquake, or terrorism is not included in most home insurance policies.
- Most homeowner’s insurance coverage limits certain high-priced or hard-to-replace items like jewelry. An appraisal and an addendum or additional policy will likely be required if you wish to include these in your policy.
- Know what it will cost to re-build your home. Most homeowner’s insurance coverage begins at $100,000; if that is not enough, look into the next level of coverage.
As with any important purchase, know your options and shop around. The lowest price of homeowner’s insurance coverage isn’t always the best deal—be certain you compare the line items of different policies to truly understand their value. One final safety net is contacting your state’s Department of Insurance to ascertain that the company you choose is a reputable one.
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