The importance of homeowners insurance cannot be overstated. It safeguards your biggest investment: your home. Having sufficient coverage is essential to ensure you can afford to rebuild your house if a disaster strikes. It also protects you against damage and losses to your personal belongings. If you bought a home on mortgage, your lender would require you to get at least a minimum amount of dwelling and liability coverage. But is that enough?
Not really. Most homes in the United States are underinsured. If you opt for the basic homeowners insurance plan, your home is likely to be underinsured as well. Now, you may argue that the more coverage you get, the higher the premiums you’ll need to pay every month. That’s very true, but those extra hundred dollars will ensure better protection of your valuable investment. So, how much homeowners insurance do you really need?
Let’s find out!
How Much Homeowners Insurance Do You Need?
Let’s start by learning the damages covered by a standard homeowners policy. Your home is protected against damage from an aircraft or vehicle, civil commotion, explosions, falling objects, fire, lightning, theft, and vandalism. It also covers internal water damage and snow damage. Many insurance providers also offer damage protection for hail and windstorms in the standard homeowners policy. However, you should look beyond the basic homeowners policy.
A good rule of thumb is to have enough homeowners insurance to rebuild your home, replace your belongings, cover liability arising due to damages and injuries on your property, and obtain reimbursement for your living expenses for the period that you can’t live on your property due to qualifying unforeseen circumstances. Therefore, here are the four types of necessary homeowners insurance coverage that you may consider:
- Dwelling Coverage: It covers costs associated with repairs and rebuilds needed due to covered perils. Your dwelling coverage should equal your home’s replacement cost.
- Personal Property Coverage: It coverscosts to replace all your belongings in case they are destroyed, stolen, or vandalized.
- Liability Coverage: It protects you from financial liability when someone is hurt on your property due to a dog bite, falling tree, and other qualifying liability claims.
- Additional Living Expenses: It covers costs of living expenses when you’re temporarily displaced from your home in case your property is destroyed.
If you don’t have a mortgage, you’re not obligated to buy home insurance. However, we highly recommend you get protection to safeguard your valuable investment. Leaving your home unprotected isn’t a good idea. In fact, you should go above and beyond to get the maximum protection to ensure complete peace of mind. Comprehensive insurance protection will protect your home and save you a lot of money in the long run.
Are you looking for a comprehensive home insurance provider in Indiana? Ron Davis Insurance is just a call away! We offer easily customizable policy options that work for you, not against you. As a leading insurance company in Indiana, we provide a wide range of insurance coverage, including home insurance, health insurance, life insurance, auto insurance, and even motorcycle insurance. Get in touch with us today to get started today!