Posted on: 27 September 2021
Are you in need of a home insurance policy but have never shopped for insurance before? If so, you likely do not know what kind of insurance you need. Here are some tips for selecting the right home insurance policy for you.
Know The Difference Between Content And Building Coverage
You will need coverage for two completely separate categories: content and building insurance. However, many new homeowners struggle to determine what is content and what is part of the building's structure. The best way to determine what falls into the building category is to think of the things that you could not easily take with you out of the home if you were to move. This is different than what came from the home, which usually includes some major appliances.
Things like all of your personal property will be part of content insurance, but so are things like your refrigerator, a standalone stove, dishwasher, and washing machine. Meanwhile, things like your HVAC system, water heater, light fixtures, and other things of that nature are part of the structure. If it is secured to the physical structure of the home in some way, it is likely considered part of the building structure.
Know How Much Coverage To Buy
The amount of coverage you need on the structure is not what you paid for the home, but how much it would cost to rebuild the home's structure from scratch. Think of it as a total loss situation, where a tornado came through and completely destroyed your home. The land your home sits on is still there, but all the building materials are needed to rebuild the home.
A home appraisal will typically break down the cost of the home itself, taking into consideration all of the building materials that the home is made out of. So things like a brick exterior, granite countertops, and natural hardwood flooring will all be factored into the value.
Your content coverage is then based on a percentage of your building overage in most cases, with you being able to increase or decrease that percentage as you need. It is worth taking a rough inventory of the things in your home to determine how much they are valued. If you have a lot of expensive tech products in your home, it may be worth upping your coverage so that you can replace everything in a total loss situation.
For more information, contact an insurance agency near you.Share