Our homes are usually our largest investments during our lifetime. We make sure the roof is in shape and check the basement after a rainy spell. In spring we meander through the nursery deciding between the red impatiens or the white begonias. How often do we check over our homeowner’s policy, though? The professionals at Superior Insurance & Auto Tags have put together some ideas to guide you to the best options for insuring your biggest asset, your home and its possessions.
Know what homeowner’s insurance covers. Basic homeowner’s insurance covers your home and outbuildings such as sheds, gazebos, or garages for damages from accidents, fire, and some natural disasters. It also covers loss of use of your home and will typically reimburse you for extra costs if you have to live elsewhere during repairs. Liability insurance, on the other hand, generally covers you if someone is hurt while at your home or on your property.
Understand reimbursement types. The two basic types of homeowner’s policies are cash value or replacement cost. Cash value will reimburse for the price of items including their depreciation. For example, if you purchased your dining room set many years ago, the depreciation will be factored in and your payout will be less the depreciation. Replacement type policies will reimburse at the rate it will cost you to replace that dining room set, which is typically a higher amount.
Construct your home inventory. Things you see every day sometimes blend into the background. That is why a home inventory is considered so important. If your home experiences major damage it will be difficult, if not impossible, to remember all the components that you use in daily living. An inventory updated yearly will have the information that you purchased that new ice cream maker three years ago. You’ll be reimbursed and able to afford a new machine when it comes time to make that fresh peach ice cream.
Consider any extras. Your personal property insurance included in the standard homeowner’s policy may not cover all your home contains. If you have an extensive art, jewelry, or other collection you will want to add additional coverage for those items. Also, it is important to be aware that while your main coverage will cover most emergencies such as fire or burst pipes due to weather, some events such as flood and earthquake are not covered under a regular policy. If your area experiences flooding or earthquakes, this extra coverage is something to look into adding to your basic plan.
Shop around. As in most major items we purchase, it is best to shop around and be sure you are getting the most coverage for your home and valuables. You may want to contact an independent agent who is not tied to one specific company and allow them to investigate your options. You may want to research different companies on your own in conjunction with working with an agent. The best path is the one that gives you the greatest peace of mind.
It is never easy to think that the bed you slept in last night might not be available tonight due to a fire or other disaster. The agents at Superior Insurance & Auto Tags are knowledgeable in all areas of homeowner’s policies, and want to give you that peace of mind that comes with knowing you are covered. Call or contact us today to discuss all aspects of safe guarding your greatest asset, your home.