When it comes to owning a home, there are costs associated with homeownership that most people do not realize. Purchasing homeowners insurance is one of those costs that can be stressful for many people. A basic homeowners policy might be the most affordable, but does it cover what you need? It all depends on your lifestyle and where you live. Some areas of the country are prone to severe problems like tornadoes, earthquakes, and hurricanes. To be protected appropriately, review your homeowner’s insurance policy frequently to find the best coverage for your needs.
Here are some extended homeowners insurance policies to consider adding to your policy:
Extended dwelling coverage. Extended coverage goes beyond the standard coverage as it provides for the rebuilding costs of rebuilding your home in the event of a disaster. Extended coverage can pay for other expenses such as debris removal, architect fees, and more.
Law or building ordinance coverage. When a home is damaged and needs serious repair or rebuilding, we recommend looking into a building ordinance policy or law coverage. Current building costs can cost you money to bring your home up to code and pay for new expenses.
Replacement costs. Another addition you can add to your policy is replacement cost up-front coverage. The loss settlement option is designed to allow you to avoid rebuilding at the location and declare the home a total loss. Homeowners will get a payout and can build a new home in a new location.
Personal property replacement. When you have to cover the costs of replacing your personal property, it can become expensive quickly. Personal property replacement will allow you to have money to pay for electronics, jewelry, art, and other possessions.
Personal offense coverage. The last extension coverage is designed to protect you against lawsuits alleging libel, slander, or defamation of character. Social media commentary can be damaging to your reputation or business. With the personal offense coverage, you can have protection from lawsuits and costs associated with such damages.
We recommend annual reviews of all your insurance policies to ensure you are getting the best homeowners insurance policy for your needs.