While most of us understand the need for home insurance, determining just how much coverage is necessary can be a trickier matter. By taking stock of what your financial needs would be if you suffer a loss, you can better gauge the appropriate coverage levels.
STRUCTURAL COVERAGE
Repairing or replacing the home gets the bulk of the attention in a home insurance policy, and for good reason. In the event of a total loss, you want your policy to provide enough funding to allow you to rebuild your home. Home rebuilding expenses are generally determined by your structure’s square footage, as well as local construction costs (including labor and materials). Because of this, some people choose to add an inflation guard to their policy to account for rising construction expenses.
COVERAGE FOR POSSESSIONS AND OTHER EXPENSES
Home insurance also covers the loss of your personal property, as well as additional living expenses for times when you can’t stay in your home following a disaster. Taking stock of your valuables with a home inventory can help you determine how much coverage you need. Actual cash value coverage is less expensive, but will typically offer less money for older items. Replacement cost coverage increases your premium, but will offer more coverage if you need to replace items like a TV or furniture.
If you need help determining the right level of coverage for your home, contact a Pike Mutual agent. Our independent insurance agents will help you evaluate your property and shop around to help you find quality coverage at an affordable rate. A custom-tailored approach will help you get insurance that works best for you and your family.