Becoming a homeowner is perhaps one of the biggest decisions you will ever make. For this reason, it is critical to research the different kinds of homeowners insurance policies, ensuring that you are choosing one to protect your home and your family’s needs. The following tips will help you to ensure you are choosing the best homeowner’s policy possible:
Be sure to insure your home at its correct replacement value. When purchasing a homeowner’s insurance policy, you will have to choose between your home’s actual cash value and its replacement value. Actual cash value only insures your home at the amount that you had purchased it for. This type of policy may seem like a good choice, however, it is important to remember that housing prices will fluctuate with the market. By choosing the replacement value of your home, you will ensure that you are covering a total loss, which will include rebuilding and labor costs. Replacement value policies are more expensive than actual cash value ones, they are often worth the added investment.
Purchase the appropriate insurance for your home’s location. Specific insurance policies may be necessary, depending on the area in which your home is located. Policies such as flood insurance or other endorsements will play a critical role in protecting your home. While water damage from things such as burst or frozen pipes is typically included in your homeowner’s policy, water damage from a flood may not be, making you responsible for the damage to your home. If your home is located in an area at risk for earthquakes, then a policy with added coverage is absolutely necessary. It is critical to find out if you will be living in a high-risk location that is prone to floods or other natural disasters before purchasing your home.
Have the correct liability limits for your needs. Most homeowner’s policies automatically include a $100,000 coverage limit, however, that amount may not be appropriate for your needs. In the event that there is an accident, you may be held responsible for property damage and bodily injury, which can easily total over $100,000. It is essential to evaluate your personal assets, as well as your earning potential in order to find the right limit.
Choose the right homeowner’s policy by contacting Brazelton Insurance Group today.