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Home
Owner Insurance and Coverage
Many
lending institutions mandate mortgage clients to have
a basic level of home owner insurance to receive a
home loan. This requirement guarantees them that in
the case of a catastrophic event, their mortgage balance
will still be paid out. But you don’t need to
stop there. Depending on what specific items and areas
of your home you want protected and in what type of
event (i.e. earthquake, fire, theft) you want your
home protected in, you can increase your home insurance
coverage above and beyond the level required by the
mortgage company.
The
price of your home is fundamentally where you begin
when deciding on the level of coverage for your home.
So, you need to first establish the amount it would
cost to repair and/or rebuild your home. Once that
amount has been established, insure your home for
that amount. Some home owner insurance policies also
automatically adjust the level of coverage each year
to take into consideration appreciation and the increased
value of your home.
Home
Owner Insurance and Personal Property
Remember,
protecting your home is not the only reason to get
home insurance. Different levels of coverage can also
protect the items in your home. It you want to protect
your home and everything in it, take inventory of
your personal property, including furniture, high-end
electronics and appliances, and anything of value.
This will establish a value for all items in your
home. Take this value and add it to the coverage level
of your home insurance policy. If you can’t afford
that amount of coverage, take a percentage of the
overall value of your personal property and adjust
the level of coverage based on what you can afford
and what you’d want replaced. If you want to
protect your personal property, you need home owner
insurance.
Home
Owner Insurance and Pets
Believe
it or not, your pets play a part in why you need home
owner insurance and in deciding the level of home
insurance coverage you choose. That’s because
your pets can cause damage to your home and injury
to others. Different levels of home insurance coverage
also cover injury in the home and protect you against
lawsuits. If you have pets, remember that they can
lead to damage and injury; so invest in home insurance
and choose your level of home insurance coverage accordingly.
If
you want to protect your home and your family, you
need home insurance. It covers you when the unexpected
occurs. Without it, you could end up losing everything.by:
Brad Stroh
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