Homeowners’ insurance policies take many forms and can be purchased in different amounts depending on how you want to protect your possessions. You will need to know the types of perils your property may be vulnerable to. Find out the natural disasters that often occur in your area. It’s also important to appraise any items you believe that hold more than just basic value. Keep a running inventory so that you know what you have at any given time and what it potentially may be worth of.
Standard homeowners policies cover your possessions, the structure of your home, specific types of liability coverage, and alternative living expenses if they are needed. Standard policies come in different levels with an HO – 1 (the bare minimum) through an HO – 6 (covers condominiums and 16 separate perils) or more. You will need to look closely at the level of policy you have, as well as the amount you want to insure your home for. Standard policies do not cover every peril but will cover most if you choose the right level.
While standard policies cover the normal perils like damage caused by tornadoes or frozen pipes, there are several things they won’t cover. Earthquakes, floods, and hurricanes will all require separate riders that will protect them from those specific types of perils and any damage that may be unique to them. If you live in areas where these perils exist, you will need to determine how likely you are to experience one of these perils and purchase your homeowner’s insurance policy accordingly.
Replacement Cost vs. Cash Value
When it comes to how much insurance you need, you will have to consider how much it will cost to replace your home or possessions. It may cost more to replace your home than what it is currently worth. If you want to replace your home with its current standards, you will have to purchase a policy that will allow for that amount. The same is true for your possessions. If you have antiques or collectibles, you will want to insure them for their appraised value instead of their cash value.
Knowing what type of homeowners policy you need, and in what amount can be very confusing and frustrating. Contact the agents of Steve Wilk Insurance Agency Inc. to get the answers you are looking for when choosing the right policy. We will help you decide what type of policy will meet your needs and how much you need for sufficient coverage. It’s up to you to choose what you need. Call us today or visit the office at 310 S. Main Street, Suite C, Lombard, IL 60148.