Great homeowners insurance is a key part of your home

Owning a home is a great achievement. After working and saving to make a major purchase, you’ll want to be sure to protect your new home with quality homeowners insurance.

Let’s discuss a few keys to make sure you’re keeping your home coverage in line.

Make sure your dwelling coverage is based on current replacement cost values

A foundational part of your homeowners policy is the dwelling coverage. One key part of your coverage calculation is the current replacement cost value of your home. The replacement cost value of a home is different than market value of the same home.

Market value is typically the real estate value that homes are bought and sold for in the market. These values are subject to home location, schools, market inventory, and other fluctuating factors.

Replacement cost is the amount that it would take to rebuild your home in the event of a total loss such as a fire or major storm disaster. Replacement costs can be influenced more by the current costs of materials and labor, which can also be very different than new construction costs.

The best thing is to consult with your insurance agent to make sure your coverage amounts are in line with the current market in your area.

Evaluate your needs for liability coverage and personal property protection

There are other important factors to consider with your homeowners policy such as liability protection and personal property coverage.

Liability coverage protects you from the costs if a guest is injured on your property. This liability protection can help pay for medical or legal bills associated with this type of accident or injury that occurs on your property. You’ll want to be sure to include an adequate amount of liability protection, especially if you own a swimming pool or trampoline.

Personal property needs can vary from family to family. Some homes may have more expensive items of furniture, clothing, electronics, or other valuables that you want to protect. Other households may have lesser coverage needs. You can work with your agent to compile of rough estimate of what coverage you want to include in your personal property coverage.

Consider various deductible amounts to help adjust your premium

Home policies typically have a degree of flexibility in how they can be structured to balance coverage levels versus cost. One important area that can be adjusted are deductibles.

A deductible is an amount of money that a homeowner must pay before coverage will kick in for certain areas of a policy. Deductibles can vary from low to high and have an effect on the premium or cost of the policy. Generally a higher deductible will reduce premium costs, while a lower deductible will raise premiums.

The best thing is to find the right balance for your situation. You can select a deductible that you could comfortably pay if needed, but high enough to help reduce the cost of your home policy.

Take advantage of a trusted agent’s knowledge

As you can see, it’s not one size fits all with homeowners insurance. There are a wide array of items that can influence the quality and cost of your coverage. We recommend leaning on the expertise of an experienced insurance agent that can help direct you to the right coverage solutions. With the right counsel, you can find the right balance for your personal coverage needs and your budget.