Figures That Affect Your Homeowners Insurance

Here are some of the factors that are important to your home insurance.

As a homeowner, it’s important that you have the right coverage to meet your home’s needs.  Part of selecting the right policies is understanding your home’s value and insurance costs.  To help you choose the right the coverage for your home, it’s important that you understand these important figures.

  • Replacement Cost Value

Essentially, this is the amount of coverage you have for your home.  This figure is based on how much it would cost to rebuild your home.  This number takes into account the costs of building materials, labor, and bringing your home up to code.  It’s important that you get your replacement cost value right as it represents the maximum amount your insurance provider will compensate you for should your home be completely destroyed.  If you set this figure too low, then you would have to pay out of pocket for the repairs exceeded your policy limit.

  • Home Insurance Deductible

Your home insurance deductible is the amount of money you agree to pay before your home insurance kicks in.  For instance, if you set a deductible of $1,000 and your home was damaged, then you would have to personally cover the $1,000 before receiving any aid from your insurance.  Your deductible and your premium have an inverse relationship, meaning the higher you set your deductible, the lower your premiums will be.  It’s important to set a deductible that you can comfortably afford so you have access to coverage when you need it most.

  • Value of Your Belongings

Your homeowners insurance covers the value of your personal belongings as part of your Personal Property Coverage.  Generally, a standard homeowners policy will offer coverage for half of your belongings’ replacement cost value.  The best way to determine the value of your belongings is by creating a home inventory that documents the value of each of your possessions.  If the value of your belongings exceeds that coverage offered by your homeowners policy, then you will want to seek supplemental coverage.

These are a few of the figures that are important to your homeowners insurance.  Do you have more questions regarding your homeowners insurance?  Then don’t hesitate to contact us at Sausman Insurance Agency in Mifflintown, Millersburg, and Lewistown, Pennsylvania.  We are ready to assist you with all your coverage needs.