Homeowners insuranceFor most people in North Texas, their home is their biggest asset. For that reason, selecting a Texas homeowners policy with enough coverage for your home, as well as your belongings, is critical. However, in a survey performed by Wells Fargo, over 40% of homeowners do not know if they have enough homeowners insurance coverage to replace their homes and belongings completely. At Arthur Blake Insurance, we want to make sure every homeowner has the coverage they need to protect their home!

What Needs to be Covered?

When trying to figure out how much coverage you need, you need to consider two main things: the structure of your home and the value of your belongings.

Structure of Your Home

When considering how much it will cost to rebuild your home, you need to figure out how much it would cost to rebuild your home at current construction rates. Remember, you will not be using the current market value or original purchase price of your home. Construction rates rise and fall over time, so it is essential to research them every few years.  When you calculate your house’s replacement cost, you need to consider all of your home’s features, including flooring, counters, and major appliances.

Most standard policies will not include flood insurance, but this is critical if you live in an area with flooding risk. Be sure to talk to your agent about adding this on.

Your Personal Items

Protecting the things inside your home is just as important as protecting the house itself. Set aside some time, and take an inventory of all the items in your home. Then, attempt to calculate the value of all of those items.

When you are selecting or updating your insurance policy, make sure that your personal items are insured for “replacement cost” and not “actual cash value.” If you cover your items at actual cash value, depreciation may be applied to the item if a loss occurs. This means you may not receive enough money to replace all your lost property.

Are There Other Forms of Homeowners Insurance Coverage That I Need?

Yes! There are a few other coverages that we believe every homeowner should have in their policy:

  • Liability Coverage – This coverage is CRITICAL. If someone is hurt on your property, you need to be sure you have enough coverage to cover their injuries. If your policy does not cover all of it, you will be on the hook! You should purchase as much liability coverage as you can afford.
  • Additional Living Expenses – This typically covers lodging if your home is damaged and you are unable to live there. The amount of coverage varies by policy.
  • Jewelry, Art, High-Value Items – Many high-value items such as jewelry have limits on how much is covered. Make sure that you purchase additional coverages to cover all of your high-value items if needed.

Arthur Blake Insurance is always here to talk you through your homeowners insurance coverage options. It is our goal to ensure that your Plano home is completely protected. For more information on homeowners insurance, please give us a call today!

 

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