3 June 2016
Homeowners Insurance 101 – Understanding What You Need
Homeowners insurance is designed to protect your home, as well as what’s in it and your other assets. This type of insurance provides protection against theft, accidents, fire and other disasters. While certain events like earthquakes are not covered by a standard homeowners insurance policy, common issues like damage caused by fallen trees are covered.
As a Cincinnati homeowner, it’s important to understand what you need from this type of insurance. By knowing what homeowners insurance can do for you, it will be possible for you to make the most informed decision about selecting a policy that fits your specific needs and budget.
4 Important Considerations for Choosing Homeowners Insurance
The best way to determine how much homeowners insurance you need is to take four different elements into account. The first is the structure of your home. You should have enough insurance to cover the cost of rebuilding your home. Keep in mind that if you live in an older home, you need to research current construction costs instead of using what you previously paid as the basis for this coverage amount.
The second consideration is your personal possessions. Whether your belongings are damaged during a fire or stolen, homeowners insurance can cover the loss. It’s worth mentioning that there’s a common misconception about this aspect of homeowners insurance. That misconception is a standard policy functions as a type of blank check. Policies do have limits on how much is covered, which is why you need to do your research. And if you have especially valuable items like jewelry or art, you will want to take extra steps to get proper coverage for those added.
Third on the list of important considerations for choosing homeowners insurance is the cost of additional living expenses if your home is damaged and you have to live elsewhere during repairs. For example, if a major storm or fire causes significant damage to your home, you’re not going to be able to live there while it’s being fixed. The amount provided for living expenses can vary greatly from one policy to another, so you’ll want to pay close attention as you’re evaluating different options.
Finally, you need to think about your liability to others. $100K is what you’ll normally find as the standard minimum for this aspect of coverage. But given the high costs associated with accidents that may occur on your property, it’s worth at least looking into options in the $300-$500K range.
The Best Way to Find Great Homeowners Insurance
With this information in mind, we encourage you to explore the different homeowners insurance options that are available in Cincinnati. By using our website, you’ll be able to easily get a quote on the most attractive home insurance policies available.