Homeowners insurance is a very comprehensive and inexpensive policy relative to what it is supposed to cover, which is a very valuable asset: your home. Just as an example, a home that costs $250,000 to construction costs about $500-$600 to insure for a year. That is about 3% of the cost to construct your home. As far as the coverage that is offered in homeowners, it is very thorough and complete. Here are a list of a few options.
- Dwelling, the home itself - Coverage A – This is the amount of money that has been calculated that it will cost to rebuild your home from top to bottom including labor. This is a very important figure because it has to take into account the cost of labor, cost of materials and also inflation. There are calculators that allow agents to generate this amount for you.
- Other structures - Coverage B – This portion of the policy is calculated as a percentage of coverage A. This is what covers buildings that are not directly attached to your home, such as a tool shed or a pool.
- Personal property - Coverage C – this portion of the policy is also a calculation that is a percentage of Coverage A. Some companies vary on this amount significantly. This is what covers the things inside your home, such as clothing, TVs, furniture. Most companies expressly exclude vehicles from this being covered.
- Loss of Use – Coverage D – This is also a percentage of Coverage A. The best way to describe this portion of your policy is to equate it to rental reimbursement. When your home is uninhabitable due to fire or other type of peril your insurance company will provide you with funds to live in a residence that is similar to yours in the meantime while your home is being rebuilt or repaired
There are more options available to you that are not automatically covered, but you should definitely consider. Call us so that we can discuss those options and we can offer you a quote!