Homeowners Insurance – The Basics

Homeowners insurance policies pay to repair or replace your home and belongings should they be damaged in an unexpected event, such as an accident, fire, storm or other disaster.

How Much Coverage Do You Need?

Start with the coverage limit. Consider the cost of completely rebuilding your home and replacing all the belongings inside it.

Your lender may require you to carry a certain amount of homeowners insurance — often equal to or greater than the amount of your mortgage. At this stage, you should also consider whether you’d like to insure your belongings according to their actual cash value or replacement value.

Understand What is Covered

It typically covers damage from fire, windstorm, hail, water damage (excluding flooding), riots, explosion, as well as other sudden and unexpected losses., i.e. theft, and the extra cost of living elsewhere while your home is repaired or rebuilt. Make sure you understand the policy so that you are able to cover the cost of repairs/ belongings replacement.

Shop Around

Not all insurance policies or companies are the same so it’s important to make sure you are comparing apples to apples.  With home prices soaring, be sure your insurance covers what your home is worth now, not when you bought the home.

For more tips give Carrie Summers with Colorado Ranch & Home Realty a call 970-759-2540.