What to look for in a Homeowner's Insurance

Your home is the most precious property you can own.  It is the dwelling for you and your family. It is your dwelling place and a save haven where the saying there is no place like home holds very true. It is only natural that you take care of it and ensure the best protection for your property.  This is the purpose of the homeowner’s insurance policy. It is very helpful to shop around many insurance companies, and choose one that meets your needs and provide maximum coverage.  Choosing the big name insurance that has been in the insurance business even before you were born is  always a safe bet, but nowadays there are many insurance companies who provide excellent coverage. Following are some details that will guide you in what you should look for in a homeowner’s insurance.

1. Purchase an insurance policy that allows you to rebuild your home. A policy best fits this need called Homeowner 3 or HO-3 policy. This has a maximum of 120-150% of your home’s value. Every time you make a major improvement in your home, it is important to review your policy. If your home is twenty years old or older, see to it that the policy will upgrade the pay to the current building codes. This is also termed as the dwelling coverage. This protects your home against damage or destruction. In case flood, fire, lightning and other perils that cause damage or totally damage your home, the policy will cover all costs of rebuilding and repair.

2. Choose a property protection policy. This will cover any valuables inside your home. Typically, you will get fifty percent coverage of the homes’ value. Jewelry and electronics are subject to replacement from $1,500 to $2,500 per item. Keep a file and record of your valuables in a place outside your home or in a safety deposit box.

3. Insurance policy that covers additional living expenses. In case of a total loss of your home, make sure that the insurance has coverage for food, clothing and shelter.  Additional living expenses may vary depending on the insurance company of your choice. Some insurance companies cover entire additional living expenses, others offer a certain percentage and others do not provide.

4. Personal Liability Coverage means protection from lawsuits arising from body injury or damage to property wherein you are legally responsible to pay. Such cases are the following: a person slips and falls in your property, a friend trips down your stairs or your dog bites someone. It is very hard to predict lawsuits so it is vital to have higher liability coverage. You can inquire from your insurance agent how much it would you if you increase your liability limits. Most coverage is under $100.00.

5. Consider an insurance coverage that takes care of your business. If your business is located in your home or you are working from home, be sure to purchase a policy that covers for your equipment. In case of loss or damage, you will not be left without the necessary to keep your business going.

6. Buy a policy that covers protection against earthquake, flood, and storm-drain damage. The policy costs $372.00 per year and more if you live in a high-risk area. Your flood insurance policy can be purchased at from the Federal Emergency Management Agency.

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