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What Home Owners Insurance Do You Need? Tips for the Best Coverage

(4/30/2012) Everyone is looking to cut costs in today's economic environment. Insurance costs are a great area to analyze and trim, particularly with the ease of seeking out new home insurance quotes online.

But important to remember is this: Don't sacrifice better coverage that you may need in the name of cost. home insurance serves the critical role of protecting your home from unforeseen disasters, as well as protecting you financially and legally in case of damage, theft, or injury. Homeowners need to consider the delicate balance of appropriate coverage and appropriate cost.

So what constitutes appropriate coverage? What makes the most sense for you and your family? Industry experts have made some recommendations to guide owners in finding that ideal level of coverage and cost.

HOME VALUE
Look for insurance that covers your home's actual structure, guaranteeing replacement of the full value of your home in case of destruction by fire or other causes. With this coverage, typically called HO-2 or HO-3, you will receive money to build a new home of the same or higher value than your current home. One policy to think twice about is a cash value policy, which subtracts depreciation amounts from your property value, ensuring you'll get less than you deserve.

LIABILITY
If someone injures themselves on your property, you could be sued and liable for medical costs. While this may seem like an unlikely scenario, it happens more often than many homeowners recognize. Liability coverage is a necessity in order to protect yourself in these cases.

PERSONAL PROPERTY
It's important to have good coverage on the structure and value of your home. But just as important is coverage for the items inside your home. Your furniture, electronics, jewelry, collectibles, and other items that can cost significant amounts to replace in case of theft or damage needs full replacement value coverage. This requires regular assessment - you should have an insurance adjuster visit your property on a regular basis to ensure your insurance is up to date and providing full coverage for your property.

NATURAL DISASTERS
Unfortunately, most basic home insurance policies do not cover flooding, earthquakes, damages or losses due to war, or other precipitous and catastrophic events. Coverage for these events may seem like an unnecessary cost for unlikely events. But this kind of damage can be catastrophic, leaving you with huge repair bills. Experts suggest you get the coverage most appropriate to your geographic area - earthquake insurance for California and other prone areas, hurricane insurance along coastal areas, and basic flood and water damage insurance for everyone else.

With these key items to seek out on your policy, you can ensure appropriate coverage for the best cost.