Take a look at the current home insurance policy you have. What type of coverage is it? Many homeowners don't realize that their home insurance may be too restrictive or limiting to them. They just assume it is a good fit. However, if your home suffers a severe fire or a storm moves through the area and leaves you with significant damage, you may need more than just a few repairs. In some cases, you may need to rebuild your home. Considering that, it may be time to think about what your home insurance actually covers in such an event.
The key question homeowners have to answer is a straightforward one. Do you have enough home insurance in place to rebuild your home if you suffer a total loss? A total loss occurs when the cost of making repairs is too high or repairs are no longer possible. In these cases, the home needs to be rebuilt. Unfortunately, many property owners do not have enough coverage to rebuild. To make sure you do, take the time to focus in on these key factors.
In most cases, your home insurance should include replacement cost. This type of coverage will help to ensure your home is replaced in such events using similar materials and the same type of quality.
Extended Replacement Cost
In many cases, replacement cost is not enough. That's because construction costs are often higher than the actual value of the home. Extended replacement cost can provide an additional 20 percent or even more (depending on the policy you select). It can also help in covering high costs of materials. For example, if your home is one of many damaged in the area and the cost of building materials becomes much higher than normal because they are scarce, this coverage helps to pay for those costs.
Inflation Guard Coverage
Another consideration is inflation guard protection, which will automatically adjust the rebuilding cost of your property to reflect current construction costs.
It may seem complex to find the right balance of home insurance in these situations. However, you can work closely with your agent to customize a policy that ensures your home is protected even if it is a total loss.
Ensure the protection of your assets. Call Henrich Insurance Group at (713) 349-0400 for more information on Texas home insurance.