Homeowners insurance is an essential part of owning a home and is a cost usually considered as part of the regular maintenance and protection of your house. In most places, it is also required by your mortgage lender, but how much home insurance do you need?
The minimum coverage may suit some homeowners, but most need additional types of coverage that the minimum policies do not include. So what are the types of coverage home insurance policies typically provide, and how do you determine how much home insurance you really need?
Do I Need Disaster Insurance?
While disaster insurance covering natural occurrences such as floods and hurricanes can be expensive, replacing your home will certainly far exceed the insurance cost if you live in an area where these events frequently occur. In the case of disaster insurance, it is a matter of balancing risk, financial situation, and peace of mind.
Do I Need Additional Content Coverage Insurance?
While most basic home policies include content coverage, the amount of this coverage and the deductible cost may not be appropriate for your particular situation. If you have several valuables, such as jewelry, or rare items, such as antiques, your basic coverage will not protect these in case of theft or damage.
On the other hand, if you have few belongings, choosing a policy with a high deductible to save money may not be worth it, as the value of your items may not be much more than the deductible itself.
Do I Need Theft Protection?
Again, most basic home insurance plans do not offer extensive coverage for loss from theft or damage due to a break-in. If having peace of mind with this kind of protection is essential, then this additional coverage will be worth the cost.
Do I Need Liability Insurance Coverage?
Homeowners’ liability insurance is essential if you have a home-based business or a condo. If a client had an accident on your property or negligence caused damage to a fellow condo owner’s property, liability coverage would protect you from the potential costs, including legal expenses.
Seeking professional advice from a Lock insurance expert can help you determine how much home insurance you need.