If you own a home, you need insurance coverage to protect your investment. Catastrophes like fire, smoke, wind, hail, ice, sleet, vandalism, theft, riots, flooding, and other events can cause to your home or even total loss. These are all things you have to consider when you are picking your homeowners insurance coverage. Home insurance services in Queens, NY can help you determine your specific needs, but the following will cover some basics of choosing homeowners insurance.
All insurance coverage comes with a deductible. A deductible is an amount of money that comes out of your pocket if something happens to your home. Once that amount is met, insurance coverage takes over to pay the rest. A higher deductible lowers your monthly premium, but it also means you have to come up with that higher amount before insurance kicks in after a catastrophe.
Rebuild or Replace
One part of an insurance policy that homeowners tend to overlook is the rebuilding and/or replacement coverage. If you choose 100 percent of the rebuilding costs for your policy, you will be compensated for the cost of rebuilding your home, not for the price of your home. Rebuilding costs more than your original structure’s worth. Replacement cost covers structural damage and guaranteed replacement coverage covers the total costs of rebuilding even if that means it goes beyond the policy limit.
Your belongings should be covered. Some things, like your vehicle, will not need to be covered on your home policy since they are already covered under their own insurance. Contents coverage provides for a set amount to replace your furniture, clothing, electronics, appliances, home goods, kitchen ware, equipment, tools, jewelry, and general personal belongings. Your contents coverage should be half of the real property coverage. If your contents will cost more to replace, you may be under-insured.
Flood and special limits coverage are separate from standard insurance coverage. If you require these elements on your policy, your agent can help you add it. Home insurance services in Queens, NY provided by the GJM Business Center includes a consultation as well as help with choosing coverage for your home. Your house is a large investment, so it is important to make sure to get the proper insurance to protect it and your wallet.