It’s time to update your home insurance policy. When purchasing a policy, it’s important to look at the actual details of it. Often, insurance agents will provide you with a policy they feel is right for your property. However, it’s ultimately up to you to ensure it really does meet your needs. Home insurance must cover a wide range of risks. Take a closer look at a few things to consider when choosing insurance for your specific home.
What's it Worth?
First, consider property insurance. This is the home insurance that covers the value of the property from risks such as fires and storms. You can choose actual value or replacement value. When selecting coverage, imagine the worst. If a fire came through the area and your home was lost, you need a policy with a high enough value to rebuild your lost home. Be sure to calculate the rebuilding cost of your home, which is generally higher (between 10 and 30 percent more) than the home’s actual market resale value.
What's the Risk?
Next, consider the liability component of your home insurance. If someone is hurt on your property and you were found to be negligent, your home insurance can cover those financial losses. How much liability insurance you have depends on many factors, including previous claims made. Talk to your agent about what's common in your area for your home's value.
Home insurance also helps to protect your possessions from risks such as storm damage, theft and vandalism. Take a home inventory. This will allow you to properly document your possessions and it can help you to add up the value of the items you have. Then, be sure the contents coverage is high enough to meet those values.
Overall, your home insurance needs to meet at least these needs. You may need additional coverage for high end valuables. You may need flood insurance or umbrella liability coverage as well. The right policy keeps your peace of mind by providing ample protection at limits that really do meet your needs. Often, adding a bit more coverage does not add a great deal to the policy cost, but it can provide a great deal of financial protection to you.
Does your coverage meet your needs? Call HIG – Henrich Insurance Group at (713) 349-0400 for more information on Houston home insurance.