How much home insurance do I need?
The most important thing you can do to protect yourself is to purchase the right amount home insurance. It will help you to avoid a major financial hit in the event that a disaster occurs.
You should consider many factors when determining the amount of coverage that you require for your home. These include its age and features as well as your belongings' value and who is using your home. A RamseyTrusted independent agent will guide you through these considerations to ensure you get the right coverage for your lifestyle and budget.
How Much Do I Need?
First, you should assess your house to determine the amount of homeowners insurance that you will need. The size of the home, age of the roof and other factors can affect homeowners insurance.
Another factor to consider is whether or not your home meets local building codes. Homes that don't meet these standards usually 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 have children in your home or host parties at your house, liability coverage is a must. It protects against lawsuits in the case of injury or damage. Generally, most policies offer $100,000 in personal liability coverage, but higher limits are available.
This part of your homeowners' insurance covers items such as your television, furniture and clothes. It covers any items in a shed or a garage that aren't your own.
You might consider an expensive item coverage endorsement if your jewelry collection is large or consists of expensive items. This endorsement will add a specific item limitation to your policy. For example, $2,500 for each piece/$5,000 in total. It is especially useful if your policy covers a number of high-end pieces, like an antique or diamond piano.
Replacement cost is the best option for peace of mind. Replacement cost policies pay for the costs of rebuilding your house and replacing your possessions in case they are stolen or damaged.
Keeping up with inflation: Most things get more expensive over time, so it's important to update your home insurance policy every few years to ensure that it keeps up with the changing price of items. Ask your State Farm Agent about the inflation guard clause. This will allow you to adjust your insurance policy for your house in line with local building costs.
Loss in use: You can get reimbursed for the cost of living somewhere else during the repair or rebuilding of your home, such as at a hotel or a motel. If your home is damaged by a covered catastrophe, this coverage can be very important. It may take months to rebuild.