How to Determine How Much Home Owner’s Insurance You Need
Homeowner’s insurance is something that every lender requires you to have when you buy a home. It also protects your valuable investment from catastrophic damage and allows for repairs that you simply wouldn’t be able to pay for out of pocket. However, figuring out how much home owner’s insurance you really need can be a little tricky. Use these tips from Schumacher Insurance Agency to calculate exactly how much you need to protect your valuable possessions and your home for damage.
- Take a look at different standard policies and see how much coverage they offer. For modest homes without tons of valuables in the house, you may have more than enough coverage with a simple minimum level. There’s no reason to pay for more than what you need.
- Consider the area that you live in. If you live in an area where there are natural disasters that can easily tear down your home – this is especially important if you live near the ocean or on a fault line, for example – you may want to look at extended coverage plans. These will help you get 125% of your home’s current market value if a catastrophe happens. However, this will raise your premium in most cases.
- Have an appraisal of what is inside your home. The items inside your home need to be covered by homeowners insurance – except in the case of particularly valuable pieces like antiques or art, which should be insured separately. However, a whole home full of furniture could easily leave you in serious debt if it all gets destroyed.
- Get an appraisal on your house every few years. Staying on top of your property value will help you reevaluate how much insurance you really need.
Contact Schumacher Insurance Agency for more information.