INSURANCE >> HOMEOWNERS

Home insurance is designed to protect you against loss of your most valuable investments from unforeseen damage, and this coverage goes beyond the structure to include the contents. It can cover everything for a storm that has damaged your home to your dog biting someone. And if you purchase a home with a mortgage, you will be required to obtain homeowner insurance to get the loan.
There are many things that can go wrong and often do when you own a home. Storms, fire, theft all involve great expense to you and to the company that holds your mortgage. These expense can be devastating. How many times have you seen the survivor of some disaster huddled in a blanket telling the world via the media that you lost everything and have no insurance.

Homeowners covers loss of use, liability should someone be injured on your property, and often medical payments involved in those injuries.

Because it is such a comprehensive policy, each "peril" is often named in the policy. What is not named in the policy can, of course be purchased as a rider to the policy. I live in a possible earthquake area and have added that to my policy. Folks living in flood zones can often add coverage that would cover damage from such a disaster.

The tough part is trying to determine how much you should cover yourself for. Replacement Costs will pay for the replacement of damaged property with no deduction for depreciation. But this coverage has a maximum dollar limit placed on it.

Guaranteed Replacement is the same as replacement but there is no dollar limit placed on the policy. The limit can be placed at 120% of the cost of rebuilding your home, but this type of policy is not available in every state.

Actual Cash Value pays you an amount that is equal to the value of the damaged property with a big minus to the depreciation. Unless your policy actually states replacement policy, you probably have an actual cash value type. The cost of this policy can increase over time however. Your property may increase in value, improvements may make it worth more, and inflation all play a roll in determining the value of your policy. Is is a good idea to have your agent come by about once every five years or so to reevaluate your property and the coverage you have.

Rule of thumb: Make sure your policy covers at least 80% of the replacement costs of your home.

Nobody wants to pay more for insurance than they must. Click here to determine if you are paying too much? Reducing your insurance premiums is one way to save money. Another often overlooked issue is making sure that you have the correct deductible for your needs.

You also need to make sure you have adequate coverage to protect your interests. Click here to determine if you need umbrella coverage?

To find out if you have the best policy for your needs, click here to get a quote without cost or obligation.

At My Twin Cities Home we will search a variety of companies to try to get you the best policies for your needs. We work with lots of different providers so you have a great selection of what is available in the marketplace.