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Maronda Homes - Five Homeowners Insurance Tips for First Time Buyers

By
Home Builder with Maronda Homes

A first time homeowner can find buying a new home exciting and overwhelming. When going over the insurance checklist, be sure to consider a complete policy that includes liability and personal property protection. When shopping for quotes, there are five areas that are especially important. Here are tips to get the best coverage at the most affordable price.

Know the difference between the replacement cost and the market value. Depending on how much was originally paid for the property, the cost of rebuilding can be higher or lower than the market value. Rebuilding a home is usually cheaper than buying an existing structure unless the original property bought was a foreclosure in which case rebuilding might be more expensive. The key is to accurately determine the cost of rebuilding when finalizing the details on a homeowners insurance policy.

Take a home inventory and determine the proper amount of personal property protection. Generally, policies cover 50-75% of the replacement value of the house. However, this may not be enough to cover certain valuables such as jewelry, fine art, collections, electronics and other expensive items. A separate rider may be needed and this should be discussed with an agent.

Have enough liability protection. This protects a homeowner if they are sued for an injury that takes place on their property. Many policies will even cover a policyholder if an incident happened away from the house. Depending on their assets, some may want to consider an additional umbrella policy if they are worried about ever being sued for an amount in excess of what their coverage offers.

 

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