If you own your home, you should be protecting your biggest asset with the proper insurance. Here’s what you need to know about home insurance and what it covers.
Why Is Home Insurance Essential as a Property Owner?
When you buy a home – especially if it’s your first time – you have probably saved and sacrificed for a long time to make that investment. But what would happen to that investment if your home were seriously damaged or lost to fire or a major storm? How would you ever cover that expense from your own bank account?
Luckily, home insurance was created for this scenario. It protects your property in case the worst happens, so you don’t have to pay for repairs or reconstruction yourself. Your mortgage lender likely requires this insurance to protect their investment in your property too.
What Does Home Insurance Cover?
Home insurance gives you broad coverage, and it’s a great deal for the cost. Most policies cover:
- Damage to or loss of the structure itself
- Replacement of the home’s contents, like furnishings, appliances, electronics, clothing, and other personal items (includes theft and vandalism)
- Additional living expenses if you have to live elsewhere during repairs or rebuilding of your home after a claim
- Liability insurance in case someone is injured on your property
Your liability coverage also protects every member of your household anywhere in the world, such as if your teenager accidentally damages a hotel room while you’re on vacation.
How Do You Make Certain Valuables Get the Right Protection?
Some high-value items are not included with most home insurance policies. But you can easily add these items via scheduled coverage (aka a “rider”):
- Precious metals
- Fine art
How Do You Know How Much Home Insurance You Need?
If you’ve never purchased home insurance before, or if you’re moving to a larger property, you may not be sure how much coverage you need. Our agents at J. K. Meadors & Co can help you determine the right amount of protection by asking these questions:
- What is the appraised value of your home?
- What is the value of the home’s contents? (Making a video inventory can help.)
- Do you have any valuables that need scheduled coverage?
- Would you prefer replacement cost or actual cash value if being reimbursed for your belongings? (The latter includes depreciation due to wear and tear.)
- Is extra personal umbrella coverage recommended for increased liability protection? (We usually suggest this for dog owners and high-net-worth clients.)
- Do you want to add extra coverage for flooding and/or earthquakes, which are not covered by most policies?
To start a home insurance policy, upgrade your existing coverage, or learn more, call us at 405-377-0000 today. You can also start a policy any time online.