Review your insurance policy regularly to ensure that it fits your family’s financial needs
Homeowner’s insurance is a necessary protection for nearly everyone who owns a home– but how do you know if you have enough? What other expenses could you incur if your home is damaged or destroyed? What’s the most accurate way to calculate the value of your home?
If you’re a homeowner, these are the types of questions you should ask to make sure you and your family’s financial security is guaranteed. If you don’t know the answers, don’t worry. Taking the time to figure them out could save you from tons of unnecessary hassles, headaches and even the heartbreak of being unable to replace or renovate your home after a disaster.
How much is enough when it comes to homeowner’s insurance?
At minimum, your homeowner’s insurance coverage should begin with a replacement cost policy– a policy that covers the entire expense of replacing your home. However, it’s often a smarter idea to purchase a “guaranteed” policy, or one that includes approximately 25% more than the value of your home, to cover additional and unforeseen expenses.
Do homeowner’s insurance policies cover the contents of a home?
If you have a replacement cost insurance policy, it’s unlikely to fully cover the property inside your home. However, it’s important to make sure these items are insured. Losing expensive computers and electronics, furniture, home appliances, valuable collector’s items, and jewellery that could be stolen or destroyed can put a huge dent in your personal finances. Luckily, for just slightly more than a replacement cost policy, you can purchase additional insurance to cover the contents of your home.
If you live in a condominium, check with your association to see what their insurance covers. In most cases, you’re still responsible for insuring almost everything that’s inside your condo.
When should I consider getting more home insurance coverage?
If you’ve recently done any renovations, additions, or remodelling that could significantly increase the value of your home, it could be a good idea to get more homeowner’s insurance. It’s tough enough to go through the effort and expense of improving your home, only to see it ruined after a disaster. The last thing you’d want is to be reimbursed only for the value of the home before you remodelled or improved it.
The addition of pools and the remodelling of kitchens usually add the most value to homes– but other renovations, such as bathroom remodels and the addition of high quality flooring, can also raise the value of your home. While professional landscaping may make your home look more attractive (and can be an expensive process) it doesn’t usually alter the long-term value of your home– so no matter how nice those rose bushes look, you likely won’t need additional homeowner’s insurance.
Keep in mind that if you have recently added a pool, you may need to get more than just additional homeowners insurance to keep you well-insured. You may also need to add liability insurance to protect yourself against potential legal trouble from slip and falls and other pool-related accidents.
No matter where you live or how large your home is, it pays to have a comprehensive homeowner’s insurance policy that can protect your family from a variety of risks. To learn more about how to make sure your insurance policies really have you covered, contact Avante Insurance today for a free consultation. You can reach our team at 1.305.648.7070 or complete our online contact form.