What Type of Home Insurance Should I Get?
When it comes to choosing a home insurance policy, there is no such thing as “one size fits all”. While this can make it more complicated to choose the best insurance policy for your needs, it also means that you won’t be paying for coverages you don’t want.
If you’re wondering what type of home insurance might be the best fit for you, consider some of these factors:
1. Comprehensive Coverage
Comprehensive coverage, also known as all-risk policies, are the most inclusive home insurance policies available. Comprehensive insurance covers your home and the contents for all risks, except those that it excludes; commonly, comprehensive insurance doesn’t include uninsurable perils like earthquake and sewer backup, but you can buy optional coverages for that level of protection.
2. Basic vs. Broad Coverage
A comprehensive home insurance policy might not be appropriate for you, so you may want to consider whether a basic or broad coverage policy is the right fit. A basic or named perils policy will only cover perils that are specifically covered in the policy, so you may carry some financial risk yourself. Broad coverage is an ideal, mid-range coverage policy that will offer comprehensive coverage on the building itself and named perils coverage on your belongings.
3. High-Value Properties
High-value properties are those that are worth $1 million or more, and home insurance policies for these homes also come with higher limits for jewelry, art, wine cellars and more. They also typically provide dedicated claim service with the experience necessary to understand the needs of a high-value claim.
If your home suffers damage, your high-value claim will allow you to cash out or rebuild. The replacement cost for a high-value property is standard, and works similarly to a typical home insurance policy. But if you decide to cash out on a high-value home, your insurance provider will offer replacement costs whether you replace the items or not.
High-value property insurance also comes with liability insurance.
4. Liability Insurance
Liability insurance will cover you for slander and libel claims if you sit on the board of a non-profit organization and are in the public eye. People in public positions can sometimes be the subject of lawsuits, for example, if you have written or said something someone has taken issue with.
5. Rental Properties & Tenants
If you rent out an entire property, or have a tenant in your home (such as a basement apartment or a room for rent), you will be required to inform your insurance provider. Not having the appropriate coverage could put you at risk if your tenant causes damage to your property. Be aware, however, that your tenant will need to have their own insurance policy for their belongings, as this will not be included under your insurance policy.
6. Coverage For Additional Persons In Your Home
Over time, the number of people living in your home may change. Whether it’s adult children moving back home after university or your elderly parents moving in, you’ll want to consider how that impacts your home insurance.
If family members are moving into your home and bringing additional belongings with them, does your home insurance policy have adequate contents coverage? Consider increasing your contents coverage to accommodate your family members. And remember, this does not apply to friends or tenants who are not family members; they will need to purchase their own contents coverage.
Home insurance can be complicated, and you may not know all of the coverages you need or the ways you can save. Contact the team at Jeffery & Spence Insurance to get started on finding the perfect home insurance policy for you and your family.
Jeffrey & Spence, thank you for sharing such a splendid and informative post about home insurance policies. There are many aspects regarding home insurance policies that people still are not properly aware of. This post will clear doubts of many readers. I am sure they will also be encouraged to make wise home insurance choices.