What Homeowners Insurance Coverage Do I Need?

What Homeowners Insurance Coverage Do I Need?

homeowner insurance companies

Insurance is a big part of owning and taking care of a home. You need appropriate coverage to get a loan to purchase a home and to protect it from anything that might happen. Knowing what sort of coverage you need can be tricky. We are here to help you find the coverage that is right for you.

What Coverage Do I Need?

The first thing to keep in mind is that you do need enough coverage to rebuild your house should something catastrophic happen such as a fire that burns the whole house down. The reason for this is that your bank wants you to have the right amount of coverage so that if something happens and you decide not to rebuild, you will be able to get back enough money to repay the portion of the loan that you still hold.

The amount of insurance that an agent is going to suggest that you need is going to be based on the value of the home, how much it would take to rebuild the exact same home in the current market, and how much it would cost to replace the items that you have inside your home. As a general rule, you want to have enough coverage that if something small happens, you can pay for it, and if something massive happens, your insurance policy is also going to be large enough to cover that.

How To Get the Right Coverage

The first thing that you need to do in order to get your coverage is to take the time to talk with some homeowner insurance companies to find out different rates. Homeowner insurance companies are going to be competing for your business and will work with you to find the right policy. Homeowner insurance companies will also work to help you adjust your coverage as needed so that you can really get the right outcome and get the policy that is going to work for you.

A study done by JD Power found that 52% of homeowners do not understand what coverage they truly need. They may have trouble identifying the replacement value of their home. A survey conducted by Marshall and Swift/Boeckh also found that 60% of homes are not valued with the right amount and that the average amount is an undervaluation of about 17%. It is important to take the time to really find the right coverage for your home.

If you need help determining the right coverage for your home, call us today! One of our experienced agents can help assess your property and set up your policy.