How Much Home Insurance Do You Need?

Published On: April 25, 2019|Categories: Home Buyers, Jasper IN Real Estate, Mortgages, Moving, Tips, Life Hacks & How-to|Tags: home owners insurance, liability insurance, mortgage payment, mortgages|

When considering home insurance, many people only know the very basics. Of course, they know they’d need enough home insurance to replace their home if it was destroyed in a fire or a hurricane, but what do they need to think about beyond that? Most people are unaware that the things inside their home, from jewelry, clothing, furniture, antiques, guns, art and appliances, to special updates like granite countertops, are often worth as much or more than the structure itself. Be sure these are covered.

For special items, take yearly inventory (Such as with jewelry, firearms, and artwork.) Take a photo and the appraised value and keep the photo and appraisal in a safety deposit box away from your house. This way it is not destroyed if your home is destroyed.

You need to consider home extension insurance – your outbuildings, detached garages, pool, pool houses, cabanas, gazebos, decks, and boats or vehicles kept inside of the garage. This can also add up to a small fortune as most people have very expensive tools in their outbuildings or garages.

You also need to consider liability insurance – how much will your policy pay if someone slips and falls on your sidewalk or if your tree falls on them? Many people only care $100,000, but this is not nearly enough for most injuries. Many attorneys now suggest $500,000 of liability insurance.

If your home is very old and unique, understand that many homeowners policies won’t cover intricate things like wooden carvings, stained glass, and wall and ceiling moldings, as these are difficult and expensive to recreate. You may be able to negotiate for a higher amount of money should your home be destroyed, but understand this will be expensive and many contractors aren’t skilled in crafting the ornate artwork of older homes.

If you live in a flood zone, understand that flood insurance is frequently a separate policy – so your home may not be protected if lost in a flood. While this may seem a high improbability depending on where you live, it is not uncommon for areas to experience flash floods, in which ten inches or rain or more falls in an hour, and that has been known to carry away a home.

When it comes to home insurance, it’s better to be safe than sorry, and buy as much as you can comfortably afford.

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