Homeowner’s Insurance Basics
Many owners of house plans are probably uncertain of what their homeowner’s insurance actually covers. After all, they are often complicated and specify events that most homeowners believe will never occur to their home. Understanding the details of your home insurance is pertinent when a disaster or damage of any measure takes place. By reviewing the following components that are typically covered with homeowner’s insurance and speaking with your insurance agent, you will be less stressed and ready to conquer a situation if it arises:
Homeowner’s insurance often refers to insurance of the home’s structure as well as the personal contents inside. The structural insurance covers numerous damages, including:
• Fire and smoke
• Lightning, wind, and hail
• Vehicles, explosions, and various falling debris
• Theft, vandalism, riots and civil commotions
• Broken glass and sudden water damage (frozen/busted pipes)
• Note that flood, hurricane, and earthquake coverage are separate policies that should be discussed with an insurance agent, if necessary.
The structural portion of your homeowner’s insurance also covers any structure attached to your home, such as a garage or deck. Unattached structures may also be covered unless used for business or rental purposes.
To figure your structural insurance, you will first need to determine how much it will cost to rebuild your home on the current lot in today’s market. A local builder or real estate appraiser will be able to evaluate the market rate per square foot of your home. This figure multiplied by your home’s square footage will equal the total of your structural insurance.
Personal property insurance applies to the things in your home. This covers the basics such as clothing and furniture to an amount that is typically 55 percent of the insurance on your home. Any of the following items may fall under special limits, requiring upgraded or separate policies:
• Jewelry and furs
• Firearms
• Rare coins, stamp collections
• Silver and gold wares
• Rugs, tapestries, and wall hangings
To determine your personal property portion of the insurance, it is important to perform an inventory of belongings. As you start searching for home plans, make a list of all the items you would like to incorporate into your new home as well as in the garage and attic. This may save you time and energy when the moving process begins. List under each item:
• Date the item was purchased
• Original cost (copy of receipt if available)
• Estimated current value (appraisal if necessary)
• Photo or video record of item
• Item’s serial number or personal identification number
Two copies of the inventory should be made, keeping one in the home (fireproof safe) and one outside the home (safety deposit box). Seek your insurance agent’s advice on how to best inventory belongings with regards to your policy. A current, detailed inventory will make any necessary claims simpler to file and should ensure maximum compensation.
Personal liability coverage differs among policies, but your basic homeowner’s insurance should cover other’s injuries to a certain extent. Discuss this more thoroughly with your insurance agent. As you make additions, home improvements or add other décor features to your home, it is important to update your list of personal inventory and make your insurance agency aware of the changes. Reviewing your policy every year is also recommended as local construction costs and codes are often adjusted. Now that you have become more aware about the coverage for insurance policies on house plans, you will be more prepared in the case of an awful event.
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