Homeowner's insurance is a necessity. For many, their homes are their most valuable asset, and the right insurance policy is vital for protecting this investment. If you have a mortgage, chances are that your lender will require you to have a home insurance policy. However, even if you do not have a home loan, you still need to make sure your property is protected. Here are three things to look for in homeowner's insurance coverage.
The Ability To Rebuild
When you choose a home insurance policy, you want to make sure that you have enough coverage to rebuild your home after disaster strikes. How much coverage this entails will vary from one household to the next. There are three levels of coverage that you can choose from, including actual cash value, the replacement cost, and the extended replacement cost. Actual cash value policies factor in depreciation, something that may leave you without enough funds to rebuild. Replacement cost policies will cover the cost of rebuilding. However, if you have high-end features in your home or feel that your home is undervalued, extended replacement cost coverage will be the best option.
Enough Liability Protection
Another thing to look for in your homeowner's insurance coverage is ample liability coverage. This kind of coverage protects you and your household against claims that are the result of injury or damage to others while they are on your property. Most home insurance policies offer between $100,000 and $300,000 in liability coverage. However, you can opt for more coverage. If you have a pool, a dog, or run a business out of your home, opting for greater liability coverage is something that you should strongly consider.
Ample Personal Property Coverage
Personal property coverage is another element of your homeowner's insurance that you will need to weigh when choosing a policy. Personal property coverage reimburses you for your personal items that are damaged or burglarized. The reimbursement can be either actual cash value or replacement cost. There are limits to this coverage, and some items may not be covered. When you search for coverage, read the fine print, and know what a policy offers in terms of personal property coverage.
If you are searching for a home insurance policy, there are a few things to look for when it comes to coverage. First, you will want to make sure that you have enough coverage to rebuild your home if it is damaged or destroyed. Liability protection is also vital. Make sure that you have enough liability coverage for your needs. While your home is essential, so are your belongings. This is where making sure that a policy has ample personal property coverage is necessary.