Charles Goodman Group: Experienced Bedford Insurance Broker
Before meeting with a Bedford insurance agent to buy homeowners insurance, you should have a basic understanding of how much coverage you need. Otherwise, you could end up overpaying for homeowners insurance. You could also wind up with a policy that doesn’t provide enough coverage, setting you back financially after an incident. It’s a fine line, but it’s easier than you think to figure out the right amount of coverage for you.
The typical homeowners insurance policy consists of many types of coverage. Dwelling coverage protects the home itself, but it doesn’t take into account the current market value of your home. Rather, it’s based on the cost of replacing your home in the event that it is destroyed. That’s why you don’t want to cut costs by insisting on dwelling coverage that’s equal to the current market value of your home. It may not be enough to help you rebuild in the event of a disaster. Also, if the market value of your home drops, it doesn’t mean you should reduce the amount of home insurance that’s protecting it. Sure, you’ll save a small amount in the short term, but if the worst comes to pass, your policy payoff could very well fall short.
Personal possessions coverage also influences the cost of your insurance policy.
A trusted Bedford insurance agent from the Charles Goodman Group can assist you with any questions regarding automobile insurance or life insurance.
This coverage includes the cost of repairing or replacing damaged, destroyed or lost items, regardless of whether or not they are in your home. People often get hung up on personal possessions coverage because they’re overwhelmed at the prospect of tallying up the value of everything they own. Fortunately, there’s a shortcut. For most people, a personal possessions policy covering 50 to 75 percent of the amount of their dwelling coverage is more than sufficient. If you own a high quantity of unusually expensive items like jewelry, fine art and high-tech gadgets, however, you may want to opt for more coverage.
Personal liability coverage protects you financially if you’re sued for injuries or damages incurred by others while on your property. Follow the advice of an experienced and knowledgeable agent when determining your personal liability coverage. In most cases, liability limits of between $100,000 and $300,000 are sufficient.
You shouldn’t rush through the process of buying homeowners insurance. The odds of having to rebuild your entire home are slim, but you need to be prepared. That’s especially true if you live in a disaster-prone area. If earthquake and flood coverage are necessary in your region, make sure to buy those separate policies.