how to figure out homeowners insurance
When determining how much coverage is needed on your homeowners policy there are several things you need to take into consideration. You will need to calculate how much your home and belongings are worth in today’s market – and take into consideration the future market. You will need to decide how much coverage you need for your personal liability policy and loss of use. All of these items will affect the amount of coverage you need to purchase and how premiums are determined with your homeowners insurance policy. Look carefully at the amounts to make sure you have adequate coverage in the event of a disaster.
Comparing quotes online is the best way to make sure you not only find the coverage you need – but you also get a great rate. People today want to save money any way they can. If you can find a cheaper rate for your homeowners insurance – you can save money for the other necessities of life.
Property Damage Coverage
To begin calculating the amount of property damage coverage you need find the value of your home. If your home were completely destroyed by a disaster – how much would it cost to replace? You will need to make sure the coverage you purchase will take into account the cost of building supplies and materials in the future and if any upgrades will need to be added to your home if it must be rebuilt. Coverage amounts differ based on the type of home you own, where it is located, and the building materials used. When you speak with your agent – let him help you determine the right amount of coverage for your property.
You will also need to calculate the value of your belongings. If you own a beautiful house you probably also own beautiful possessions. The easiest way to access the value is to create a claims list. You will need to go throughout your home and make list of the items that would need to be replaced if there was a fire, flood or other hazard. Add up the cost of these items and how much it would cost to replace them if needed. Remember there is a difference between actual cash value and replacement cost coverage. Choose the right amount of coverage and the right type of policy to take care of your needs.
Remember to include any outdoor structures or amenities when you are calculating property damage coverage. You will want to insure your garage, sheds, swimming pool and patio areas in case they are destroyed in a storm. Add up the value of these items and include that amount in your property damage coverage.
Personal Liability Coverage
Another important part of homeowners insurance is personal liability coverage. If you or anyone you live with injures another person – or if the person is injured on your property – you will be responsible for the medical expenses. Accidents happen all of the time and whether it is your fault or not – someone will need to pay the hospital, pharmacy and even physical therapy bills if there is a serious injury. You never know when an accident might happen – so make sure you have adequate coverage on the personal liability portion of your policy.
It is not difficult to determine how much coverage is needed for homeowners insurance. Once you look at all of the different policies and the recommended coverage amounts for your area – you should be able to figure out how much protection you need. Go online to find the best rate for homeowners insurance today.