A recent study concluded that 69 percent of home owners are under-insured. Unfortunately, many home owners think they are fully protected and are stunned to find out at the time of loss that their coverage is inadequate.
Getting the right homeowners insurance coverage for your home and belongings depends on many things, from crime rates, tornado risk and wildfire hazards in your area to the specific personal property coverage and deductibles that make the most sense for your household.
Here are a few key strategies you may want to consider to make sure you have adequate home insurance:
- Increase your liability insurance with an umbrella liability policy, which will provide liability coverage up to $1 million or more.
- Get replacement cost home insurance to cover what it would cost to replace your home and personal property, instead of “actual cash value” coverage, which will only cover the current depreciated value.
- Be sure to read over the policy's exclusions carefully and ask your agent if any of these items are a risk, and if you can purchase additional insurance to cover them.
- Add coverage for specific items of value, such as jewelry, art and collectibles, through “endorsements” or “riders” on the policy.
While you may be able to buy online homeowners insurance, consider working directly through an agent who can provide in-depth explanations of each aspect of your policy. When you buy home insurance, you are protecting your financial future. Take time to seek good advice from a knowledgeable independent agent.