Things to Consider When Insuring Your Home

July 4, 2012

Everyone needs some type of home insurance.  If you have a mortgage on your property (which most people do), your lender actually requires you to maintain a basic level of home insurance.  But what exactly and how much insurance do you need?  Is every policy the same, and are all types of accidents and events covered?

Here is what you need to know about insuring your home, while keeping costs of insurance down.


The Basics

 The first thing you need to know about insuring your home is that you pay for several different features.  The most expensive coverage you pay for is your dwelling, or the cost to rebuild should something occur.  It is important that you really consider the cost of rebuilding, and even bringing your home up to modern code if needed.  It can be more than what you current home is even worth.


Next, you pay for basic contents insurance.  This covers your personal belongings in the home should something happen.  You can get a basic idea of this from Castle Cover contents insurance, and see how different values of items cost different amounts to insure.


Finally, you usually get some type of personal liability coverage for your home, which protects you should anyone sue you because they were injured by you or your property.

 Special Circumstances

 There are other special circumstances that you should consider when insuring your home. For example, if you have expensive jewelry, electronics, or artwork, you may want to get additional property insurance to cover those items in your home.  There are also policies that can cover electronics or other items as well.

 The Extras

 Finally, your basic home insurance doesn’t cover every disaster.  For example, if you live in an earthquake area, your home won’t be covered unless you get special earthquake insurance.  The same is true for flood zones.  If you home is flooded, your basic insurance policy won’t cover it.  And remember, a flood can be man-made too – like a fire hydrant getting knocked over in front of your home and flooding it.  Make sure that you’re prepared for anything.