As a homeowner in Missouri, you want to make sure that your home insurance policy is set up correctly. Along with life insurance, it is one of the most important polices you purchase. Your home insurance can help protect your home, personal belongings, other structures like sheds or solar panels and even from financial loss from someone getting hurt on your property. Here are a few ways to check your policy.
Home Insurance Home Value
Pay close attention to the value of the home. You want to make sure have enough coverage but you don’t want your home to be overvalued. While each company has its own replacement cost calculator, you don’t want to be paying for coverage that you don’t need. Make sure that the policy has everything listed correctly because in the event of a loss, this is how the insurance company is going to replace your home. Make sure to have enough coverage to make the necessary replacements or repairs if you have to file a claim.
Typically, your replacement value will be higher than the market value of the home. This is because of the higher costs to rebuild your home if there is a major loss. The insurance company doesn’t get the ability to start on a fresh lot like your builder did. They have to pull permits and clear the lot which will cost additional money.
Home Insurance Personal Belongings
You want to make sure you have enough coverage to pay for your personal belongings on your home insurance policy. Typically, this is called ‘Coverage C’ listed on your policy. Think about all your belongings and the cost you had to buy them new. Make sure your ‘Coverage C’ is enough to replace everything, Also make sure to have Personal Property replacement. Personal property replacement will replace your property rather than subject you depreciate values. So if you have a 5 year old flat screen tv your policy is going to replace it with a similar flat screen tv rather than give you the deprecated value. Typically having personal property replacement isn’t expensive to have on your home insurance policy.
Home Insurance Other Structures
Home insurance helps replace your other structures like sheds, barns, carports, ect. This is also known as ‘Coverage B’. You want make sure your coverage B is enough to cover the replacement or cash value all of these ‘unattached’ structures.
Assuming You Have Flood Insurance
Typically homeowner policies don’t cover damage from run off water or ‘flood’. This means that if there’s a flood, you won’t have coverage unless you purchase a flood policy. Flood insurance is regulated by FEMA and can be purchased though a separate policy.
Most home insurance policies don’t cover earthquake unless an endorsement is put on the policy. Make sure and ask your agent if you are covered for an earthquake or land movement. Some companies don’t offer earthquake coverage. This is why having an independent agent who can sell with multiple companies is important.
Contact us at Millennium Brokers today to learn more about home insurance policies. We are prepared to help you protect your home in Springfield!