Rick Case Insurance Agency Blog
Whether you like it or not, home insurance is a crucial aspect of financial planning. Thus, those who do not know much about it are at a disadvantage. Admittedly, it is more interesting to read about IRAs and mutual funds and to spend early retirement on Caribbean beaches. Unfortunately, unless your house finances are in order, you have to put aside mutual funds, IRAs and other financial instruments. Here are five essential elements to consider when you are trying to understand home insurance.
You should buy coverage that is specific with the replacement cost, and not your home’s current market value during the time of the claim. Market values have a small bearing to the rates of local contractors. Hence, replacing your house would end up as a painful experience. Replacement cost coverage is what you should ask, especially after a major disaster strikes. This is because the cost of labor and materials during this time can skyrocket.
Coverage for Belongings
Most companies would offer coverage for 50 to 75 percent of the value of your things and belongings. This should be a good idea since a shiny new replacement house would mean nothing if your belongings have all been wiped out in an unfortunate incident. Get coverage for the replacement cost of your belongings more than their depreciated value. Although this should mean an increase in your premiums, you can choose a higher deductible. This is advisable if you have antiques, firearms, and jewelry.
Liability coverage is another fundamental part of every homeowner’s insurance policy. This protects you when someone gets accidentally injured in your property and then files a lawsuit against you for damages. It will also help cover situations such as if your dog bites someone or your tree falls on your neighbor’s house and wrecks it. There’s no way to know the exact liability coverage you need, but you need to review certain recent lawsuits in your area to see how much the judges usually award in damages.
When it comes to home insurance, no two houses will ever be the same. Thus, the policies should also be different. You should decide on what options you should add on in order to make sense for you. If your parents have a lot of storage space or guest cottage, then temporary living costs should not be a priority to you. If you live in an area where there are many floods, earthquakes, and hurricanes, you need to add separate coverage for these.
Some Final Words
One crucial element of your homeowner’s coverage that you may sometimes overlook is the company itself with all its range of prices, features, and options. Always look for financially sound insurance companies before you decide on getting that home insurance policy. Get the home insurance that you deserve after considering all the options.
At Rick Case Insurance Agency, we put our clients first by offering them policies that they can afford. Having insurance is a necessity nowadays and we're here to help you out. Learn more about our products and services by calling our agency at (405) 722-5556. You can also request a free quote by CLICKING HERE.