Homeowners Insurance - How Much Is Enough?

Homeowners Insurance - How Much Is Enough?
The total amount of insurance coverage you may need to
purchase to protect your home is based on the replacement
costs of the home. If your home is destroyed in a fire or
by some natural disaster such as a wind storm of some type
the replacement value may not be enough to rebuild it
again. In today's market the property values are more and
the construction materials will cost more than they did
previously. You may want to consider purchasing more
homeowner's insurance coverage than just what the
replacement value is today.

Your homeowner's insurance policy can be protection for
your home if it is damaged in almost any way. It can be a
lifesaver in the event of theft, fire, vandalism, an
explosion, or wind damage. If your home is inhabitable for
any reason that is covered by your policy, you can use the
funds to live elsewhere while your home is being rebuilt or
repaired.

There may be some losses which are not covered by your
homeowner's insurance and your insurance agent will inform
you about these uncovered losses. If you live in a state
that is considered a high risk state for damages caused by
tropical storms, hurricanes, or wind and hail your
homeowner's policy may refer you to the state for
protection from these types of damages. There are state
sponsored catastrophe funds such as the Wind Pool program
which may be available in your state. If you plan to move
to or if you already live in a high risk state like
Alabama, Texas, Florida, Mississippi, or North and South
Carolina you may want to consider buying wind storm
insurance.

Flood insurance is not included in most homeowner's
policies. The Federal Emergency Management Agency offers
flood insurance through the National Flood Insurance
Program. Destruction caused by high waters or a flash
flood, which means if water penetrates your home the flood
insurance will cover the damages instead of homeowner's
insurance. Ask if your home is in a high risk area and
adjust your coverage to cover the possible flood damages.

The main idea behind homeowner's insurance is to protect
the owner against loss of property for almost any reason.
It is of utmost importance to review your policy on a
regular basis. It is up to the homeowner to keep adequate
coverage by adding coverage for improvements or remodeling
or the purchase of new furnishings. Inflation and rises in
property values need to be considered too. A home
purchased in 1980 may be worth 3 or 4 times the original
purchase price in 2008. A home built in the 70's or 80's
might have different building codes in the 21st century.
There certainly has been an increase in the cost of
building materials since that time. Protecting your
family's home is one of the most important things you can
do for them. Homeowner's insurance is the best way to
assure them and yourself that there will always be shelter
for them to be comfortable in.

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Gary Milton writes for the insurance search and information
site, http://www.ridoe.net , who can offer homeowners,
auto, life and health insurance quotes from multiple
brokers.