Homeoner’s Insurance: What Coverage Do You Need


One thing that many people have in common across the nation is that they posses home ownership. These homes not only provide shelter and a place for these people to live, but it is also a financial investment. Like any other financial investment, and most likely the largest financial investment you will ever make, your home should be protected. That is why it is required by law to protect your home with a homeowners insurance policy. Whether you are a new homeowner or not, you may be wondering how to determine your homeowner’s insurance needs to correctly protect your home. It can be confusing because there are so many different options and you may not be aware of all your needs.

The first thing you need to take into consideration is how much it would cost to completely rebuild the home if something were to happen to it. This could be a fire, natural disaster, or a number of different things. With an appraisal by a licensed appraiser or contractor, you can find this information out. If something were to happen to your home you would want to make sure that you were insured for enough money to rebuild it back to the state it was in, or possibly better. This is most important with newer homes or higher valued homes.

Secondly, you want to consider all of the items that you have inside of your home. This including televisions, computers, or anything of large amounts of value. This is necessary not only for the possibility of home destruction but also if you had minimal damage or a home robbery of some sort. You need to total the amount of money you consider your valuable assets to accumulate. It is also recommended that you take pictures of the items, or even video record them so you have the proof you obtained the items. You should also keep receipts for all of your high-cost items.

Geographic location also will have a large input with the coverage you need. If you are in a flood zone, you are going to need to have flood insurance. People have to carry policies that adapt to different environmental issues like hurricanes or earthquakes. You can look up the property location and the city will be able to tell you if you have any zoning issues or if you should have any concerns.

If you owe money on your home, your lender will require you to have a homeowners insurance policy. The prices can be expensive, so see if you get discounts for adding to life insurance or vehicle insurance. You also may be able to put it into your monthly mortgage payment, so you may want to look into that as well. Work with an insurance agent to make sure you are getting the best price and to guarantee you’re fulfilling your homeowners’ insurance needs.