How much insurance coverage do I require?
The most important thing you can do to protect yourself is to purchase the right amount home insurance. This can save you a lot of money in the case of a catastrophe.
When deciding how much insurance you need for your home, there are several factors to take into consideration, such as its age, features, value of your possessions, and who lives in your house. RamseyTrusted's independent insurance agents will guide you in all of these decisions and help you find the best coverage to suit your lifestyle.
How Much Do I Need?
To determine how much insurance coverage you require, it is important to assess your home. The size of your home, the age of your roof and any additional features can all affect your homeowners insurance needs.
A second factor to consider when building a home is whether it meets the local building codes. Homes that do meet these standards typically cost more to replace. You may be able to cover the cost of bringing your home up-to-code after a disaster by adding an ordinance or a law endorsement to your coverage.
Liability limits. If you have children in your home or host parties at your house, liability coverage is a must. It protects against lawsuits in the case of injury or damage. Most policies include $100,000 in coverage for personal liability, but higher limits can be purchased.
Personal property: Your homeowners insurance will cover any personal items you have or use in your home. This includes your TV, furniture, clothing, and more. It covers any items in a shed or a garage that aren't your own.
If you have expensive jewelry or other items in large quantities, you may want to think about getting an endorsement that covers expensive items. This adds a specific item limit to your policy, such as $2,500 per piece/$5,000 overall. This is particularly useful if you own a lot high-end items such as an antique piano or a diamond pendant.
Replacement cost: If you want the greatest peace of mind possible, then a policy that covers replacement costs is probably the best for you. A replacement cost insurance policy will pay you the cost of rebuilding or replacing your home, and your possessions should they be 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 policy pays you to stay in a hotel during the time your home is being reconstructed or repaired. This coverage will be important if a disaster destroys your home, since it may take months to reconstruct.