Home Insurance is by far one of the most confusing and overwhelming areas of insurance, especially to new comers to the home insurance arena. Without enough coverage, a catastrophic loss can create a large financial hardship , wiping out bank accounts and leaving no money to properly rebuild your home. I would much rather be over insured, than underinsured, however it is also possible to wind up paying too much for excess coverage that you do not need and would not necessarily be paid out to replace a home that costs less to replace. I will briefly touch on things to look for when buying home insurance and how to avoid these pit-falls.
1) The first thing you want to look for when your agent provides you with a proposal on your home insurance is a copy of the valuation software he used to calculate the replacement cost. make sure that all of the items listed on it are accurate as it will take into consideration ; quality grade of home , floor materials, roof materials, number of bathrooms, kitchen size and much more.
2) Also take note of the replacement cost option on the personal property portion. If ACV (Actual Cash Value) is selected, the insurance company is only going to replace your belongings at a depreciated rate. For example, instead of being reimbursed for your $1000 retail TV, you may only receive $100 or $200 dollars after depreciation. It can make the quote seem more competitive pricewise if coverage's like this are omitted and it is of no service to you, the consumer.
This is just a couple items to look for and of course it can be far more complicated than just this. For more information, please take a look at my website and email me with any questions you may have.
Thanks for reading my blog!here is a link to my page where you can request a quote or have your questions answered.
www.farmersagent.com/jmilber
https://www.facebook.com/pages/Jeff-Milber-Farmers-Agency/667812869993388?ref=aymt_homepage_panel
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