subject: Coverage Counts: Home Owner Insurance Options [print this page] Coverage Counts: Home Owner Insurance Options
When disaster strikes, the first thing that you need to assured of is your insurance coverage. Standard homeowner insurance policies may vary. For example, tornado coverage might be 'standard' in some Midwest states but that may not be the case someplace else. It all boils down to understanding your coverage options and finding out which policy would best fit your needs.
1. Actual cash value. This is probably the most popular policy. In this, the fair market value is considered. You will be reimbursed the amount it will take to replace the possessions noted, minus an amount for depreciation.
2. Replacement cost coverage. With this home owner insurance policy, repairs or replacement will be done without taking into account the amount of depreciation.
3. Guaranteed replacement cost. In this, the insurance company will cover replacement or repair, even if doing so will be more expensive, which can be a result of an increase in building costs and the repair materials needed. This policy is mostly offered for newer homes. The policy can pay around 20% more than the standard limit, and it can vary from state to state.
4. Separate policies. Standard home owner insurance policies may exclude damages brought by hailstorms, hurricanes, floods, earthquakes, etc. Find out whether your home is at risk of one of those factors and take a look at separate coverage options.
5. Loss of use coverage. In this insurance policy, you will be reimbursed the expenses you paid out of being unable to use. For example, fire destroyed your home - you will be reimbursed whatever you paid when you rent an apartment somewhere. Note that the amount will be evaluated by the insurance company to make that the expenses are incurred out of living the usual lifestyle.
6. Building Code upgrade coverage. With this policy, the costs of installing a building code requirement will be reimbursed by the company.
Find out what coverage you need and make sure that you are sufficiently covered. Taking the time to take care of insurance matters today will let you avid the hassle after untoward incidents happen. Disasters won't be as disastrous, when you are sufficiently covered with your home owner insurance.
welcome to Insurances.net (https://www.insurances.net)
