Choosing the right home insurance policy is a delicate balancing act. Naturally, you’ll need enough coverage to rebuild your home if it’s completely destroyed in a disaster, but that doesn’t mean you should carry more than necessary. Carefully weighing the risks your most valuable asset faces will help ensure you’re adequately protected without overspending on insurance.
4 Factors to Consider When Choosing a Home Insurance Policy
1. Weather Events
Every region has its own unique threats that could seriously damage or destroy your home. While the Midwest faces tornadoes on a daily basis, Alabama residents have to contend with hurricanes and tropical storms. If extreme weather is common in your area, you may want to ask your agent whether your policy covers all the most likely risks.
2. Your Valuable Possessions
The standard home insurance policy also protects your personal property from accidental damage, theft, and vandalism. However, each category of belongings is subject to separate limits which may not fully cover the cost of your valuables. If you have expensive jewelry, artwork, or firearms, you may want to purchase additional coverage.
3. The Local Housing Market
Home insurance policies are based either on the retail price of your home or how much it would cost to rebuild. Even when housing prices are up, the cost of new construction will likely be higher than buying a comparable house on the open market. Before choosing coverage, be sure the policy you choose offers enough coverage to rebuild in the event of a total loss.
4. The Liability Coverage
In addition to protecting your assets, home insurance usually includes liability coverage that shields you from lawsuits and injury claims. As a general rule, you’ll want a liability policy with limits equal to the value of all your other assets combined.
Buying a home insurance policy can be a difficult choice, but you don’t have to do it alone. Since 1987, Goggans Insurance has helped Scottsboro, AL, homeowners protect the things that matter most, with high-quality coverage tailored to meet their needs. Follow their Facebook for more insurance tips, visit them online to learn more about their home coverage options, or call (256) 574-3440 to request a free quote.