Responsible homeowners understand the need for insurance. While having a plan is not often required by law, it’s usually required by your lender if you carry a mortgage. After all, homeowners insurance typically covers damages or losses to the structure of your building, the value of your personal items, and accidental injury or damage to a third party while on your property. Every homeowner needs a tailored policy, but there are some situations where a standard policy is insufficient.
Exploring Policy Limitations
Your current plan may come up short in the following ways:
- Replacement value: Standard policies usually cover the depreciated value of your home (actual cash value) instead of the
- High-value home: A standard policy is usually insufficient for a home worth $750,000 or more, so you’d need high-value homeowners insurance.
- Valuables and collectibles: Coverage limits may not be high enough to include expensive personal items.
- Other items: Special features such as pools and detached buildings may be covered minimally by your plan.
Protecting What Matters
A homeowners policy should give you the peace of mind that you won’t have to repair or replace losses out of pocket in the event of a covered peril such as a fire or other disaster. The last thing you want to find is that your policy is inadequate because of the cost of your home or the valuables therein. Talk to an expert to make sure that you have the right level of coverage for your home.