How much coverage do I need for my home?
It is important to buy the right amount of insurance for your home. This can save you a lot of money in the case of a catastrophe.
When deciding how much insurance you need for your home, there are several factors to take into consideration, such as its age, features, value of your possessions, and who lives in your house. When you work with a RamseyTrusted independent insurance agent, they will walk you through all of these considerations and make sure that you have the coverage that fits your lifestyle and budget.
How much do I need?
Doing a thorough assessment of your property is the first thing you should do to determine how much homeowners coverage you need. The size of home, the age your roof, and any added features will all impact your homeowners insurance.
If your home does not meet local building codes, this is another factor to take into consideration. Typically, homes that do not meet these standards cost more to rebuild. Addition of an ordinance or law to your insurance policy can help you cover the cost to bring your home up to code following a loss.
Liability limits: If you host parties or have children living in your home, you should have liability coverage that provides protection against a lawsuit in the event of damage or injury. Generally, most policies offer $100,000 in personal liability coverage, but higher limits are available.
Personal property: Your homeowners insurance will cover any personal items you have or use in your home. This includes your TV, furniture, clothing, and more. You can also get coverage for items you keep in your shed or garage, which aren't a part od your home.
You may want to get an expensive item endorsement if you have many expensive jewelry pieces or items. The endorsement adds an item limit, like $2,500 per item/$5,000 total. This is especially helpful if you possess a large number of expensive items, such a diamond jewelry or an antique keyboard.
Replacement cost. If you're looking for the most peace-of-mind, a policy with replacement cost coverage is the right choice. A replacement cost policy pays you for the cost of rebuilding your home and replacing your possessions if they are damaged or stolen.
Maintaining your policy in line with inflation. Most items become more costly over time. It is therefore important to update the home insurance coverage every few years so that it remains current with price changes. To do this, ask your State Farm insurance agent about the inflation protection clause. It will adjust your policy to reflect current building costs.
This coverage will pay for you to move into a hotel while your home repairs or is rebuilt. If your home is damaged by a covered catastrophe, this coverage can be very important. It may take months to rebuild.