Understanding Your Home Insurance Coverage

Home insurance is a necessity for every homeowner. It covers the cost of repairing damages or rebuilding your home, your living costs if you need to find a temporary place to stay due to repair work, and even the legal liability of your entire family should they be responsible for an accident or property damage.

Get the Home Insurance coverage you need for your home and belongings. Update your policy each year to include changes and price adjustments. You must understand your insurance policy fully and know what it covers.

What Should My Coverage Be for Homeowners Insurance?

You must have an educated estimate figured for the cost to completely replace your home. Add up all of the current costs for structural rebuilding and your personal belongings to find the right number. Since building materials and construction costs change all the time, it’s vital that you readjust these numbers at least once each year.

Structural costs and insurance coverage limits have several categories. The cost of replacing damaged property will cover the cost of the property but has a maximum limit. An extended replacement cost gives a certain percentage over the limit to cover any increases in building costs, while an actual cash value policy deducts the cost of depreciation.

You can also get a policy for your belongings that covers items of similar quality in full, or you can opt for the cash value which also includes depreciation.

Remember that most insurance policies cover the most common reasons for home loss or damage. These include weather-related damage from storms and water (although flood insurance is generally a separate policy), theft, and even an explosion.

What Factors Affect the Cost?

Several factors affect your OH Home Insurance policy price, such as:

  • Square footage of your home
  • Construction and labor costs
  • Building materials
  • Style of the house
  • Special features
  • Crime rates
  • Risk of a natural disaster
  • Condition of the electrical, heating, and plumbing systems

Speak with your insurance agent and a trusted local builder, or builders association, for assistance with the correct prices and how to reach a reasonable estimate. They have the expertise you need to make accurate calculations. Keep in mind that you should also check your local building codes. These include minimum standards to meet if you need to rebuild, and you will be responsible for adhering to them.

It’s essential that you conduct a yearly examination of your insurance policy. The better you understand your coverage, and the more often you update it, the more protected you will be. New personal belongings or rising building costs could leave your current policy amount lacking. Don’t risk facing inadequate insurance coverage in the event that you experience home loss or damage.

About Haughn & Associates

Founded by Michael Haughn in 1986, Haughn & Associates is a full-service, family-owned, independent insurance agency based out of Dublin, Ohio. H&A strives to provide the best possible price and unique insurance solutions across a myriad of industries, including construction, IT, Habitation & Commercial Property, Agriculture, and Engineering. Devoted to providing the best of business insurance, life and disability insurance, personal insurance, employee benefits, and bonds, H&A is proof that success lies in long-standing client relations and satisfaction. To learn more about how H&A can be of service to you, contact us at (877) 802-2278.