Home insurance is one of the best investment decisions you will make in your life. When you buy home insurance from CG Insurance Agency of Williamston, MI, you protect your home, yourself, and family members when the unthinkable happens. While home insurance is pivotal, how do you know you have adequate home insurance coverage? Purchasing adequate home insurance ensures you avoid out-of-pocket expenses during the claim process. Here is a guide to help you determine the amount of home insurance coverage you need.
How much would it cost to rebuild your home?
When purchasing home insurance, it’s essential to plan for the worst. How much would it cost to rebuild your home in case of a total loss? To determine this figure, instead of using the cost you incurred while building your house, it’s essential to consider the cost of renovations and the cost of building your home in your area.
While you may use the cost of rebuilding your home as the home insurance value in the first year, it’s vital to keep updating your home insurance plan to factor in significant renovations and changes in local construction costs. This way, you will ensure that your house isn’t underinsured.
What’s the value of your assets?
How much would it cost to replace your furniture, clothing, electronics, and other assets in case of damage or loss from fire, vandalism, or theft? To avoid underinsuring your personal belongings, take an inventory count of all your assets from room to room. Next, come up with a realistic cost approximation, bearing in mind how much it would cost to replace that item today.
Likelihood of being sued
Home insurance protects you against bodily injury, property damage, and legal suits for losses you cause to other people. While the default liability insurance may have a limit of, let say, $100,000, how do you know this amount is adequate? As a rule of thumb, your liability insurance should cover all your assets. Besides, you can boost your home liability insurance with umbrella insurance for optimal protection.
Are you still unsure of how much home insurance you need? Please contact CG Insurance Agency for more information. Better yet, you can visit our Williamston, MI offices to speak to one of our agents in person.