You've spent a lot of time, effort, and money on your home, and you rely on it for housing as well as a financial investment. Therefore, it's essential that you protect it as effectively as you can. One way to do so is by choosing the right home insurance policy. Below, find out if your home insurance policy is properly protecting your assets. 

Choose Value Over Price

Many people request multiple quotes and simply choose the least expensive policy. This could be a mistake. Instead of focusing on price, you should be more concerned with getting a great value. If you can increase your liability protection by $50,000 and lower your dwelling coverage deductible by $1,000, all by paying an extra $25 per month for a better policy, it makes sense to do so. You'll be thankful you did so if you ever have to file a claim.

Consider Additional Coverage

Most home insurance policies do not cover damage caused by flooding or earth movement. If your home is in a flood plain or at risk of mudslides, earthquakes, or sinkholes, seriously consider adding additional coverage to your policy. The same is true of wind and hail damage. Some policies specifically exclude these hazards and require you to pay an additional amount for coverage. Discuss with your agent whether you are protected against these. You may also need sewage backup insurance in case of a messy plumbing or septic incident.

Select Replacement Cost Over Market Value

When insuring your dwelling, choose the coverage that pays you the replacement cost of your home, rather than its market value. Market value fluctuates, and you might wind up either over-insured or under-insured. In the first case, you pay too much for coverage, and in the second, you are vulnerable to uncovered losses if the home is destroyed. Have a contractor provide an estimate for how much it would cost to rebuild your home to its current state, and have it insured for that amount.

For assistance designing a home insurance policy that provides the utmost protection, contact Craig Giovani State Farm® Insurance Agent in Mebane, NC. They serve businesses and individuals throughout Alamance County and Northern North Carolina. In addition to home insurance, they also offer business, renters, auto, and life insurance. Visit their website to reach out to them online or call (919) 300-5911 to request an insurance quote.