How Much Home Insurance Coverage Do You Need?
Saturday, October 5, 2019, 6:00 AM | Leave Comment
When it comes to insuring your home, you want to make sure that you have enough.
You don’t want to end up on the wrong end of a disaster to find out that you’re not going to be financially stable afterward.
Here are some helpful tips that will allow you to figure out how much coverage you will need.
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Dwelling Insurance
There are various sectors of insurance that all fall into the home category. The first we’re going to talk about is dwelling insurance. This type of insurance covers your home in the event that it burns down, explodes, or so forth. This pretty much covers all the materials that were used to construct your home, deck, garage, and porch. The amount of dwelling insurance you get should be equal to the amount that it would cost to replace your home.
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Personal Property Insurance
Another major factor of your homeowners insurance is your personal property. This type of insurance is there to cover your furniture, clothes, sports equipment, appliances, electronics, and so forth. If these get destroyed, vandalized, or stolen they will be covered under your personal property insurance. Figuring up the cost of this is going to take some time. Go through your home and write down all the items that you would need to replace if your home was gone tomorrow. Then, assess the value of these items and total it up. This should give you a fair idea of what amount of personal property insurance you should have.
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Liability Insurance
Think of liability insurance as a way to cover your tail in the event that someone gets hurt on your property. Some examples include a dog bite, a broken arm from a fall on your porch, or a cracked hip from slipping on your stairwell. When these accidents happen, this type of insurance will be there to protect you from major financial lawsuits.
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Additional Living Expenses Insurance
Also referred to ALE, this type of insurance is there for covering additional costs that add up while you’re working on rebuilding your home. Let’s say your home is swept away by a tornado. It’s going to take some time for your home to be rebuilt. So, you’ll likely be paying for hotels, meals, and other living expenses during this time. The amount of this coverage is typically decided by the insurance company and based on a percentage of the overall dwelling coverage.
Understanding the various types of insurance policies that you should have on your home can be overwhelming at first. However, you should now have a pretty good idea about the types of insurance that you should be getting for your home. Simply sit down and do the math to figure out the exact coverage amounts that you’ll need to have for your property.
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