How much homeowners insurance is sufficient?

by Guest » Fri Aug 31, 2007 06:48 am

How can I determine whether I have enough coverage on my home or not?

Total Comments: 3

Posted: Fri Aug 31, 2007 07:30 am Post Subject:

Yeah TMorris, it is a very important issue. Your property needs to get appraised by a professional property appraiser before the insurance company offers you a coverage level. Therefore, make sure that your property value was measured accurately. Enquire with your agent about any other factors that could affect the property value.

Secondly make a home inventory. You can do it in different ways, like- noting down the items name, make etc. or recording their descriptions or making the video of the household objects. It will help you to ascertain the amount of coverage you may require to protect these.

Make sure you have installed a shield against inflation in your policy. It can be done by reviewing your policy regularly. You may need to escalate your policy level if there is an overall upsurge in the property value in your locality. Also inform your agent whenever you make a large purchase for your home or make renovations.


Posted: Fri Aug 31, 2007 08:09 am Post Subject: You may require extra coverage

The level of coverage definitely depends on the property value. But there are several other external factors which may influence the coverage level.
Your insurance demand may also vary with your place of residence. If you are residing in a flood prone area you may require to purchase flood insurance because typical homeowner insurance does not cover damages caused by flood water. Similarly, your insurance requirement will be different if you are living in the gulf area where you may suffer damages from hurricane or natural disaster.

Posted: Fri Aug 31, 2007 09:09 am Post Subject: You may need some additional coverage

Yes my friends, you are all quite right. However, homeowner insurance alone may not fulfill all your insurance related requirements. Therefore, you may need to add some riders to your homeowners policy.

  • Floater: it will offer protection to your valuable possessions like-jewelry, antiques etc. against listed perils. Conventional homeowners insurance does not offer full coverage to these valuable items.
  • Property damage liability coverage: it will provide you with coverage if you are held liable for causing damages to other's property, like- your tree fell on the neighbor's porch and damage it.
  • Bodily injury liability coverage: you are responsible to pay for the medical bills if your guest gets hurt in your premises. Bodily injury liability coverage will cover up those medical expenses.
  • Additionally, you can also consider purchasing an umbrella policy. It will cover you if you have to compensate for a damage greater than your liability coverage amount. It will also pay for the legal bills if you face a lawsuit.


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