What coverage to look for when shopping for home insurance.

When shopping for home insurance, it’s essential to look for coverage that adequately protects your home and belongings. Here are key coverage types to consider:

1. Dwelling Coverage:
   • Covers the structure of your home, including the roof, walls, floors, and built-in appliances.
   • Make sure the coverage amount is sufficient to rebuild your home in case of a total loss.
2. Personal Property Coverage:
   • Protects your belongings, such as furniture, clothing, electronics, and other personal items, against covered perils like theft, fire, or vandalism.
   • Take inventory of your possessions to estimate the appropriate coverage amount.
3. Liability Coverage:
   • Provides protection if someone is injured on your property, and you’re found responsible.
   • It also covers legal expenses if you’re sued for property damage or personal injury.
4. Additional Living Expenses (ALE) or Loss of Use Coverage:
   • Pays for temporary living expenses if you have to move out of your home temporarily due to a covered loss, such as repairs after a fire or other disasters.
5. Medical Payments Coverage:
   • Covers medical expenses if a guest is injured on your property, regardless of who is at fault.
6. Other Structures Coverage:
   • Protects structures on your property that are not part of your main dwelling, such as a detached garage, shed, or fence.
7. Personal Liability Umbrella Policy:
   • Offers additional liability coverage beyond the limits of your standard policy. This is particularly useful if you have significant assets to protect.
8. Flood Insurance:
   • Standard home insurance policies usually do not cover flood damage. If you live in a flood-prone area, you may need a separate flood insurance policy.
9. Earthquake Insurance:
   • Similarly, earthquake coverage is typically not included in standard policies. If you live in an earthquake-prone region, consider adding this coverage.
10. Replacement Cost vs. Actual Cash Value:
    • Understand whether your policy covers the replacement cost of items or their actual cash value (depreciated value). Replacement cost coverage is generally preferable.
11. Policy Exclusions and Limitations:
    • Read the policy carefully to understand what is excluded from coverage and any limitations on specific items.
12. Deductibles:
    • Consider the deductible amount you are comfortable with. A higher deductible can lower your premium, but you’ll pay more out of pocket in case of a claim.

It’s crucial to review and update your home insurance policy regularly, especially when significant life changes occur, such as renovations, additions, or changes in the value of your possessions. Additionally, it’s advisable to shop around, compare quotes from different insurers, and understand the terms and conditions of each policy before making a decision.  For a home quote or home insurance review contact us today at (425)212-3505.