Home insurance coverage is not the same across the board. Some homeowners opt for extensive coverage to insure costly valuables. Others opt for “bare bones” coverage that covers the basics at the minimum allowable coverage limits.
Here's what to consider when determining the amount of home insurance you need.
Coverage For Personal Possessions
You store plenty of valuable items within your four walls. It’s crucial that you protect these items sufficiently. Home insurance typically covers personal possessions for upwards of 50 to 70 percent of the coverage limits for the structure of the home.
Perform a home inventory to determine if you have enough coverage noted in your policy. Make a list of each item you own and its value. Take a picture or record a video of each of your possessions. Write down the amount you paid for each item and organize the receipts.
This inventory will help your insurance agent recommend the proper amount of coverage. If you need more coverage, it will be necessary to increase your limits. A home inventory list will also help you accurately file a claim.
You’ll likely entertain guests at your home from time to time. But such an activity comes with risks. If someone is injured on your property due to a slip and fall, a swimming pool accident or a dog bite, you could be deemed liable to cover medical expenses or even damages. Liability coverage can help you manage any costs associated with these injuries.
Be careful when selecting liability coverage for your home. You should have enough insurance to protect your assets in the event of a lawsuit. If you own a dog or another animal that might pose a threat to visitors or others on your property, make sure damages resulting from bites or attacks fall under the liability section of your policy. This is vital to protect yourself against any liability-related lawsuits.
Coverage For The Home's Structure
While homes are built to stand up to the elements, they’re far from indestructible. Fires or severe weather can damage or even destroy your home. You must be able to cover the cost of rebuilding your home at today's construction costs in order to protect yourself against this potential devastation.
A rebuilding cost is the price the home could sell for today rather than the amount you spent to buy the property. If your home has to be rebuilt, you should have enough insurance in place to cover the entire square footage and local construction costs.
Know that you might not be able to fully insure the entire replacement value of the home — which means you’ll have to chip in for rebuilding costs as well. However, coverage should extend to the major costs associated with rebuilding.
Additional Coverage Options
Your insurance policy might not cover every peril that might affect the home. For example, it might be a smart idea to purchase flood insurance coverage — as flooding damage is often excluded from home insurance policies.
We've got you covered. Call CCI Insurance Services, Inc. at 530-458-8831 for a free home insurance quote.