There are many choices to buy home insurance. One thing we hear a lot is “I have a much lower quote for my home insurance”. However, this quote may not be as good as advertised when you take a closer look at it. For instance, a lot of online companies only focus on price. While this looks like it is saving you money, in the long run this policy could cost you thousands.
All home insurance policies have the same coverages.
Is this a misconception that you have? In 2021 home insurance policies give you the ability to chose from many options. From deductibles to liability coverages, home insurance policies give you the freedom to pick and choose what is important to you. One coverage that you should never go with out is personal injury. This coverage protects you against things like libel and slander. For instance, say someone sues you for saying something untrue about them. Without this coverage, you are on your own., however for many home insurance policies this coverage needs to be added.
My house isn’t worth what my current policy says it is.
Similarly another area that gets homeowners in trouble is the valuation of their home. Many people think that their home insurance should be set to market value. This is not the case, your home insurance should be set to replacement cost. In other words, you home is properly insured for what it cost to build from the ground up. Not having your dwelling insured correctly can cost you thousands on a partial loss. Take a kitchen fire. Say that a fire causes you $10,000 in damage. Your new home insurance policy though has your dwelling insured for 60% of its replacement cost. In addition you have a 1,000 dollar deductible. Your new home insurance policy could be paying you 5,000 for that 10,000 dollar loss. This is due to the co-insurance on your new home insurance policy.
How can I avoid a big problem?
Let us help you out. Call us at 412-344-2800, contact us via our client center, or check us out on Facebook, Instagram, Twitter, or YouTube. We would be happy to explain to you how home insurance works. We would also love the opportunity to work you up a quote. Your home is typically your largest asset, make sure your home insurance protects it properly. Do not let a lower quote on your home insurance cost you.
