You know that you need a home insurance policy to protect your property – but exactly how much insurance do you need? It can be overwhelming to figure out the specifics of an insurance policy that is just right for you. It is important to understand how much and what kind of insurance you will require to sufficiently protect your home. It is crucial that you set realistic policy goals that are specifically curated for your property, home, and belongings. To help you along, here are some questions you can ask yourself to get a good estimate of the right insurance policy for you:
- If I had to rebuild my home, how much would it cost me?
- How much is the cumulative value of all my personal belongings?
- How much would alternate accommodation cost if I had to live somewhere else while my home was being rebuilt or repaired?
- In case of a personal liability dispute, what would be the amount they could sue me for?
Let’s explore all these questions in more detail.
Rebuilding the home
Your insurance is supposed to protect you in worst-case scenarios, so it’s important to answer this. If your home is destroyed by an accident or another unfortunate event, how much would it cost you to rebuild it completely? Here, you also need to consider which causes are covered under your policy and whether your entire cost would be covered (minus deductibles). While calculating the amount, also consider factors such as the age of your home, the property rate fluctuations in your market, and how much would it cost you to rebuild it. Also, consider any modifications and upgrades you’ve done since your first purchased the house – don’t just stick to the price you paid for it! Enlisting the help of a contractor, or even your insurance agency could help you get a better estimate.
Value of personal belongings
The good thing about home insurance is that it also covers damage to your personal belongings in the event of fire, wind, or other causes of accident. Take an inventory of all your belongings in the house, room-by-room, including furniture, art, electronics, clothing, appliances, and other goods to arrive at an estimate of the value.
The cost of alternate accommodation
It could become impossible for you to live in your house after an accident, making it necessary to move into a hotel or another temporary house. While planning for this, consider day-to-day costs such as transportation and food along with the stay. Your insurance company should be able to help you with the calculation.
Personal liability dispute
The right insurance policy should be able to cover you in case you’re found to be responsible for injury to a guest in your home. Calculating this cost may not be straightforward but your insurance agency can help calculate this based on various factors.
Contact Sungate Insurance Agency in Orlando, Lake Mary, Longwood, and Heathrow areas of Florida for expert advice!
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