Home insurance coverages are there to give you a peace of mind that every can be taken cared of if ever disaster strikes. Much as you do not want to, theft, natural disaster, or fire can strike any time. As a homeowner you need to ask yourself if the home insurance you have can protect you, your family, and your properties if anything bad happens.
How much insurance do you need? Read on and learn the essentials that you need to have for your home insurance:
Rebuilding your home
When a big storm or fire strikes and wipes out your home, your insurance should be there to cover the cost in case you want to rebuild it back to its former glory. Sad to say, a lot of homeowners do not have enough coverage to do this after a disaster strikes. Consult your real estate agent or insurance agent on how to compute for this and see if you have enough coverage.
Replacing your personal belongings
Another important thing to consider is how you can replace the items inside your house in case they are stolen. Let’s say your portable band saw was stolen, will your policy pay for it? This will really depend on the kind of insurance that you have. It can either cover for a replacement cost or give you the cash value of the stolen item.
Payment for your valuables
While most policies will cover for the usual items, you need to have an endorsement policy to cover for the more unique and more expensive items in your house. Your standard policy will only cover for a certain amount but you can get riders to cover for more expensive items like artwork, jewelry, and other collections.
Cost of living after a disaster
When disaster strikes, you might have to live temporarily in a hotel or apartment while your home is being rebuilt. You need to remember that you still need to make mortgage payments while all of the rebuilding is happening. Insurance policies can cover for your increased cost of living but they will not be covering for it forever. You might need to add some to your premium if you want to increase the amount of temporary coverage so discuss this item when buying your insurance policy.