The Essentials of Quality Protection for Your Home
First and most importantly, you need enough insurance to cover the costs to rebuild your home at today’s rates. That is referred to as a Replacement Cost policy, which means that in the event of a disaster (i.e. fire or wind), the policy pays for the repair or replacement of damaged property with materials of like kind and quality. Insurance Advisors has state of the art tools to better value your home properly, based on specific criteria such as square footage of your home, type of construction, the style and age of the structure among other things. There is no depreciation applied for wear and tear on standard replacement cost coverage. You should be mindful that a homeowners policy does not cover floods or damages caused by flood; nor does it cover damages caused by neglect of routine maintenance.
Your policy typically features coverage for costs incurred in the event of a loss that requires you to temporarily live away from home. Your contents and personal possessions are automatically covered under most homeowners policies. Your Insurance Advisors representative can provide the details on how that dollar amount is derived.
Many people like to raise their deductible to save money on the premium; and that is certainly an option. But beware! The deductible amount you choose will come directly out of your pocket if you have a claim. For example, if you decide to maintain a $5,000 deductible, make sure you set aside the funds to cover that amount if there is a loss.
If you own a cabin, seasonal place or vacant dwelling, they will require a different type of policy. That distinction is something you will need to discuss with your agent to ensure you have the proper policy and subsequent coverage’s.
Consider adding a Personal Umbrella policy to your portfolio if you own a lot of assets. An umbrella policy is an excess liability coverage that goes above and beyond your homeowners and auto insurance policies. You get a lot of coverage at a very affordable price.