The amount of home insurance coverage you need depends on many factors, and it varies from homeowner to homeowner. In order to determine how much coverage you need is to talk to your insurance agent. This can be discussed over the phone or by making an appointment to come in to speak with your agent.
Making sure you have enough home insurance to cover the cost of rebuilding your home at current construction costs is the key. That cost could be more or less than you paid for the home or what you could sell it for today.
The cost is based on:
* local construction costs
* building codes
* square footage of your home
* features and materials of your home
The coverage for personal property is usually a set percentage of the dwelling coverage, say 40%, 50% or 60%. To determine if you have enough coverage, conduct a home inventory. Write down everything you own and figure out how much it would cost to replace it all. Keeping photos or a video of all of your personal property, along with receipts, can serve as an excellent form of evidence of your possessions. Don’t keep these records in your home.
Any time you think you need more coverage, contact your insurance agent. Be sure you have coverage that guarantees the replacement of personal items, and doesn’t just pay their value at the time of loss.
Coverage for living expenses can vary depending upon your insurance company. Many policies provide coverage for about 20% of the insurance on your house. Some companies offer a policy that provides unlimited coverage for a limited length of time. If you rent out part of your house, this coverage reimburses you for loss of rent while your home is not fit to live in. If you think you need more coverage, talk to your agent.
Liability coverage is part of most home insurance, but the standard amount may not be enough to protect your property in case of a lawsuit. You should have enough liability insurance to cover at least two times the value of your assets including your home. If your assets are greater than your liability protection under your homeowner’s policy, you may want to consider purchasing an excess liability-or “umbrella”-policy. Ask your agent what would be best to suit your needs or get a free Louisville Home Insurance