With the economy improving, the value of your house is probably going up. While this means good news if you are thinking of selling, it can mean something different for your homeowners insurance policy. Keep in mind that the amount of homeowners insurance you need to have is based off of what it would cost to rebuild your house, not the market value of it. Keep these tips in mind to ensure that you have enough protection for your home.
- Go online – there are many online resources that are available that can tell you just how much homeowners insurance you need. Sites like AccuCoverage, which comes with a $7.95 fee, will use the building materials of your house, the size, and various other factors to determine how much coverage you need.
- Work with an agent – real estate agents will be able to let you know how much insurance protection you need for your house. Make sure to let them know about any upgrades you have made, as well as high-end materials that are in your house.
- Fill any gaps – while a typical homeowners insurance policy will provide coverage for many perils, it will not cover every unfortunate situation that you run into, such as an earthquake or flood. Make sure to invest in a separate policy, or add on an endorsement to ensure that you are properly covered.
- Do not forget liability – liability coverage is meant to provide protection in case of a lawsuit that is associated with an accident at your house. Make sure you invest in enough liability coverage to provide protection for any size lawsuit that you may run into.