There are a lot of insurance options out there! Even basic homeowners insurance policies have a variety of options to choose from, so it’s important to know where to start. Your policy should cover a minimum of 80 percent of the cost of rebuilding your home, not including the value of the land it’s built on. You have two general coverage options:
- Actual cash value: Covers the cost of what your home and belongings were worth at the time of destruction. This total value is depreciated, meaning it may cost more to rebuild than this type of policy will pay.
- Replacement value: Covers the cost of fully rebuilding/replacing your home and belongings, regardless of depreciation. This type of policy only costs about 10 to 20 percent more and offers more complete coverage.
Once you decide what type of coverage you wish to purchase, it’s time to consider how much coverage you want for each portion of your policy. Your independent agent is available to discuss your unique needs. Ask about the following:
- Dwelling: Covers the structure of your house, along with attached structures such as a garage or deck.
- Other structures: Covers separate structures that stand on your property such as a shed or detached garage.
- Contents: Covers your belongings up to half of the value of your home. You may need a rider for high-value items or collections such as jewelry or fine artwork, in which case you may also need a purchase receipt or appraisal.
- Liability: Covers your legal expenses if a guest presses charges after being injured on your property.
- Medical payments: Covers guests’ medical expenses that result from an injury on your property.
- Relocation expenses: Covers rent, hotel rates, food and other expenses associated with temporary relocation after a covered incident causes your home to become uninhabitable.
Review your homeowners insurance policy with your independent agent each year before renewing to ensure that your coverage still meets the needs of your family.
We’ll help you get started. Call Tabitha E. Walker Insurance Agency at (540) 657-5633 for more information on Fredericksburg home insurance.