How To Know If You Have Enough Insurance Coverage For Your Home


The process of buying home insurance can be very confusing with so many different forms of coverage available to you. It's possible that you're wondering if you even have enough insurance to cover your losses if you needed to make a claim. Here is how you can figure out if your coverage or good or if it is lacking in areas.

Do You Have Enough Coverage For New Construction?

Home insurance is going to be a lifesaver in a situation where you suffer a total loss of your home. For example, you may have a house fire where your entire home is destroyed, or a hurricane may come through and destroy your home. You'll want to have enough insurance coverage to completely rebuild your home from the ground up, which means that there is enough to cover your construction costs. 

A good way to know how much money your construction costs are is to look at your appraisal. The report comes up with a final value of your home based on things such as the type of countertop you have in your kitchen, or if you have drywall or plaster walls. 

In addition to having the right dollar amount for coverage, you'll want to keep increasing that coverage each year. Yes, it will increase your premium, but it will help you keep up with inflation. The cost to build your home in 2020 is not going to be the same in 2040, and not increasing your coverage can cause you to come up short in terms of rebuilding your home.

Do You Have Enough Coverage For Personal Property?

Your home insurance provider will typically base your personal property coverage off of a percentage of your home's value. A bigger home will have more things inside it, which is why more personal property coverage is needed. However, you want to make sure that everything in your home is covered.

Check your policy to make sure that you are covered for things like jewelry, artwork, furs, firearms, and things of that nature. You may need to purchase additional coverage for these times. For example, there may be a limit on how much you can claim for jewelry, and you would need to purchase additional coverage if you have a lot of expensive pieces. 

Work closely with your insurance agent when determining your coverage limits. They can help ensure you're buying the right amount of insurance to meet your needs. To learn more about home insurance, contact a company in your area like Phillip R Davis Insurance.


30 November 2019

Learning About Home Insurance Plans

Hi there, my name is Donald Regaldo. I would like to share the different coverage types, and amounts available for home insurance policies. Setting up and maintaining a home insurance policy seems to overwhelm or frustrate nearly everyone. These protective policies do not need to be so confusing, however. You can learn all there is to know about this subject to stay in control of your insurance plans. By learning the ropes, you can save money while keeping your coverage amounts at the right level. With the right plan, home insurance can save you and your family from devastation after a loss caused by theft or fire. Feel free to come by my site anytime to learn more about home insurance coverage.