If you’re like most people, your home is the largest purchase you will ever make. And, while it’s highly likely that you already have homeowners insurance, it’s also likely that you’re underinsured. You’re not alone; one study found that 60% of U.S. homes are underinsured. Plus, if you’ve remodeled or added on to your property over the years, you’re almost guaranteed to have underestimated how much coverage you need.
To protect the investment you’ve made in your home, take a little time to understand what homeowners insurance does and does not cover, how much coverage you need, and what determines the amount you pay.
Typical homeowners coverage protects you from damage caused by fire, smoke, theft, hail or wind, damage due to frozen or burst pipes, and other perils. However, most policies do not cover damage from floods, landslides or earthquakes, or even sewer backups. You must get an endorsement or separate policy to protect yourself from these risks.
The home itself plus any other buildings on your property, such as a detached garage, sheds, gazebos, or other structures.
The contents of your home, including furniture, clothing, housewares, and other items. Most policies cover your items even when they’re not actually in your home, such as when you’re traveling.
If your home is damaged and you must live elsewhere while it is being repaired. This coverage pays for things like hotel, restaurant, and other expenses.
This coverage is designed to protect you if someone is injured on your property, or if you, a family member or even your pet causes damage or injury to someone else.
When determining how much coverage you need, you must choose between replacement cost or actual cash value.
Many policies offer an extended or guaranteed replacement option, which pays a certain additional amount to rebuild your home, even if it exceeds your policy limit.
The best way to make sure you have the amount of coverage you need is to talk to Alaska USA Insurance Brokers. We can arrange to do an assessment, to make sure the coverage you have is appropriate for your situation.
While every insurer has their own criteria, here are 10 of the most common things that determine your cost for homeowners insurance:
Don’t just blindly pay your premiums year after year without making sure you’ve got the right coverage for your situation. Put your insurance to work for you by taking the time to review your insurance coverage regularly.
Call Alaska USA Insurance Brokers today to make sure you’re fully protected. We will help you identify the best level of coverage for your needs, at a price that fits your budget.
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