Factors to Consider When Purchasing or Updating Homeowners Insurance
Before you can figure out what you need in regards to homeowners insurance, you first need to know what you have in terms of coverage. Most people choose to have their homeowners insurance paid from their mortgage escrow account and do not even examine the annual renewal statement when it arrives. At a minimum, you should verify that your name, address, and mortgage company are all correct.
Then, look take a look at the annual premium. Is it enough coverage for your house and your possessions? In most policies, a home’s contents are insured for 50 percent to 70 percent of the home’s value. So if you have $100,000 coverage for the structure, you generally have $50,000 to $70,000 coverage for the contents. If you don’t think that it’s enough, increase it.
It is also important that you make sure you have replacement coverage for your home. “Replacement cost” coverage pays the cost of rebuilding or repairing your home or replacing possessions without deductions for depreciation. That’s typically better than “actual cash value” coverage, which pays to replace your home or possessions minus depreciation.
For more information, contact MillionSaverHomes.com a local Las Vegas real estate broker at 702.212.3513.
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