Home insurance is one of those necessary expenses that I see most people 'go low' on. Most people will only insure their home for enough to pay back a mortgage. Problem is, if the home is truly destroyed, you will have to pay more than just the mortgage! You will have to pay for demolition, debris removal, and rebuilding of your home!
You should purchase enough coverage to not only rebuild the home, but also to pay for all the extras that will come from a total loss: demolition, debris removal, and possibly even re-zoning in building laws. All of this should be taken into account when choosing your Dwelling Coverage.
There are also sections that cover your personal property, loss of use payments if you can't live in the home for a period of time, additional structures that may be on the property, and liability coverage and medical payments if someone is injured on your property.
To get a full evaluation of these coverages, you should call an insurance professional in your area and discuss what you truly need to be covered properly.
Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
There are two major sources for information about limits. The mortgage company is going to direct certain limits. In California the mortgage company cannot ask for more coverage than what an estimator renders to replace the property and clean up the debris. The second piece of information is the replacement cost calculator. Most companies today require that the house be insured to full value because they are extending replacement cost coverage. The third place to look for limits is your agent. I always recommend that the customer purchase the highest possible limit of liability. A lawsuit can bankrupt you quickly. The fourth place is the value of jewelry, guns, collections and other items restricted in the policy. Most people are satisfied with the automatic limits for personal property but if there is the slightest apprehension select expanded coverage. There are many more issues, earthquake and flood coverage, water back up coverage, law and ordinance coverage but all these can be discussed with an agent.
.JPG){kind=avatar}
You should purchase enough coverage to not only rebuild the home, but also to pay for all the extras that will come from a total loss: demolition, debris removal, and possibly even re-zoning in building laws. All of this should be taken into account when choosing your Dwelling Coverage.
There are also sections that cover your personal property, loss of use payments if you can't live in the home for a period of time, additional structures that may be on the property, and liability coverage and medical payments if someone is injured on your property.
To get a full evaluation of these coverages, you should call an insurance professional in your area and discuss what you truly need to be covered properly.