Whether you are buying your first home or your tenth, knowing how much homeowners insurance to purchase is always a challenge. Not having enough coverage may result in lower premiums, but it may not rebuild the entirety of your home in a disaster whereas too much coverage can result in higher premiums. Given that a home is likely the most expensive purchase you’ll ever make, it is important to have a quality homeowners insurance policy that safeguards both your house and your belongings. Not only does a policy cover damage to your home from covered incidents, but also it offers liability protection from claims such as personal injuries and pet-related accidents.
Although homeowners insurance coverage can vary from one policy to the next, the most commonly covered perils include:
- Lightning strikes
- Riots or protests
- Falling objects
- Damage from a vehicle or aircraft
- Volcanic eruptions
- Windstorms and hail
Keep in mind that a homeowners insurance plan will not cover every peril with the most commonly excluded items being floods, earthquakes, and sewer backup. Separate policies can be purchased for these items.
If you have a mortgage, your lender will require that you carry homeowners insurance. When deciding how much coverage to purchase, you’ll want to have enough to rebuild your home, replace your belongings, cover injuries and damages that occur while on your property, and reimburse your living expenses should you be forced to live elsewhere, post covered incident. Dwelling coverage is the type of insurance that helps pay to repair or rebuild your home and any structures such as garage, porch, or patio that are damaged by a covered incident. You’ll want your dwelling coverage to equal your home’s replacement cost. A reputable insurance agency like Boss Insurance Agency in Kingwood, TX can work with you and an appraiser to determine the right amount of insurance that you need.