What is Adequate Home Insurance?
Home insurance is a necessary part of your protection strategy. The incidences of home invasion and burglary is up. Your home is a major asset to you and your family. Many families would find the loss of their home or personal possessions to be irreplaceable. Most mortgage lenders would require your house to be covered to protect their investment. In some cases landowners will require their tenants to possess homeowner’s insurance. Your policy should cover the following:
1.The structure of your home: In the event of damage due to fire, hurricanes, lightning, vandalism your standard home insurance will compensate for damages to the interior and exterior of your house so that your house can be repaired or totally rebuilt. Usually damages due to earthquakes, floods and poor home maintenance are not compensated. If you need protection from any of these events you may request incorporation for protection via separate riders in your policy.
2.Your personal possessions and valuables: Clothing, furniture, appliances and other home contents are covered by your policy if damaged in any insured disaster. There will be a limit as to how much compensation you can receive unless you purchase separate floater policies for items that insure them against their fully appraised values.
3.The cost of additional living expenses if you are forced to live elsewhere while your house is being repaired for damages.
4.Your liability to others: Whatever the damage you or your family causes to others even if it is not on your property, your homeowners policy would end up paying the medical bills or damages for the injury or agony caused by you or your family.
5.Umbrella or excess liability: When you own assets and investments that are worth more than the liability limits of your policy you may consider purchasing umbrella policies to cover them. This is not a component of homeowners insurance and should be purchased separately.
The insurance you might need should essentially comprise three levels of coverage.
1.Actual cash value – the value of your house plus belongings after depreciation
2.Replacement cost – actual cash value without deduction for depreciation, required to calculate how much is needed to rebuild your house to original value of the property
3.Guaranteed (extended) replacement cost – comprehensive coverage with inflation buffer to pay for whatever it might cost to repair/rebuild your house, typically the ceiling for such a policy may be 2-0-25% more than purchased coverage.
One of the major policies you must own is home insurance. Murietta residents can get information on best insurance quotes to choose their policy and insurers.