People seem to always argue about the most important insurance coverage to have. Some say life insurance, others home insurance or auto insurance. Now life insurance is probably the most important in securing your family’s financial future if you pass away, but while living, there’s probably no greater insurance policy than home coverage. Think about the investment you’ve made in becoming a homeowner. Chances are it’s the largest investment you’ve made in your life, and that’s exactly why having the correct insurance coverage for it is essential to you and your family’s overall financial survival.
So the big question that always seems to be asked is, how much Connecticut homeowners insurance does my house need? What are the critical attributes that I need to look at when determining my policy? Well rest assured, we’ve done this for you, as usual! Here’s the first of our two part story on homeowners insurance:
We could say this until we’re blue in the face, and yet still some people don’t do it! Remember to insure your home for the cost of rebuilding it in the event of a catastrophic loss. Many people make the mistake and insure their homes for the market value. This is one of the biggest, and most popular, mistakes out there. Here’s the scenario that you should think about when determining coverage:
-A couple are looking for new insurance for their home. They purchased the home about two years ago at $230,000, but because of the down housing market, the value of their home has fallen to $195,000. But the estimate for completely rebuilding their home has come out to be around $225,000. When shopping for insurance coverage, this couple needs another coverage to cover the cost of rebuilding their home, $225,000 or more. Just because the market value of the home has fallen does not necessarily mean the cost to rebuild it has also fallen!
Check in tomorrow for our second part of our Connecticut homeowners insurance blog, which will discuss risk.