How much coverage do I need for my home?
Buying the right amount of home insurance is one of the most important things you can do for yourself. It will help you to avoid a major financial hit in the event that a disaster occurs.
You should consider many factors when determining the amount of coverage that you require for your home. These include its age and features as well as your belongings' value and who is using your home. RamseyTrusted will work with you to determine the amount of coverage you need for your home. They'll also help you decide what type of insurance is best for you.
How Much Do I Need?
Assessing your home is the first step to determining what amount of homeowners' insurance you require. The size of the home, age of the roof and other factors can affect homeowners insurance.
It is also important to check if your house meets local building regulations. Homes that don't meet these standards usually cost more to rebuild. If you add an ordinance endorsement or a law extension to your policy, it may cover the cost for bringing your home to code in the event of a loss.
Limits on liability: If your home has children or you host parties, it is important to have liability limits that provide protection in the event you face a lawsuit for injury or damage. Most policies provide $100,000 of personal liability insurance, although higher limits may be available.
This part of your homeowners' insurance covers items such as your television, furniture and clothes. It covers any items in a shed or a garage that aren't your own.
If you have a large amount of jewelry or expensive items, you might want to consider getting an expensive item coverage endorsement. It adds a limit on the value of each item, for example $2,500/$5,000. It is especially useful if your policy covers a number of high-end pieces, like an antique or diamond piano.
Replacement cost: For the most peace of mind, a replacement cost policy is likely the best choice for you. A replacement cost policy pays you for the cost of rebuilding your home and replacing your possessions if they are damaged or stolen.
Keeping up with inflation: Most things get more expensive over time, so it's important to update your home insurance policy every few years to ensure that it keeps up with the changing price of items. To do this, ask your State Farm insurance agent about the inflation protection clause. It will adjust your policy to reflect current building costs.
Loss of Use: This insurance pays to stay somewhere else, like a motel or hotel, while your house is being rebuilt or repaired. This coverage will be important if a disaster destroys your home, since it may take months to reconstruct.