Choose Your Homeowners Insurance Coverage Wisely

If you are a homeowner, it is likely that your single largest investment is your home. Protecting it from theft or disaster with insurance is crucial and should be one of your highest priorities. Purchasing homeowners insurance will give you the peace of mind that comes from knowing you are prepared should an unexpected situation occur.

Basic Homeowners Insurance

Most mortgage companies require individuals who purchase a home to carry a basic homeowners insurance policy. This insurance will protect your from any damage to your home that could affect its value. This basic policy will also typically provide you with personal liability and theft coverage.

Comprehensive Homeowners Insurance

A comprehensive policy will additionally cover your home should it sustain damage from fire or water as well as loss of personal possessions, vandalism, and loss of use of your home (assisting you to pay for another place to live while your home is repaired, if necessary). You should be aware that water damage does not include damage from flooding. Federal Flood Insurance handles flood damage and must be bought separately.

Comprehensive also is likely to include a clause that will guarantee covering the cost of rebuilding your home.

Homeowners insurance Quotes

A good way to calculate an appropriate dollar amount for homeowners insurance is to multiply the square footage of the home by the current square footage cost of homes in your area. You can access this information through local real estate agents, building associations, or insurance agencies.

When you request a quote for homeowners insurance, be sure to include any additional information such as other structures (i.e. detached garages, sheds, barns, etc.), special features, and custom built or upgraded portions of the home.