One of the most important mistakes someone can make is not having enough

homeowner’s insurance coverage. It is hard to know how much is enough especially

if it is your first time buying. Here are a few ways to keep you from getting trapped

in the under covered zone. No one wants to find that their home was destroyed and

they have to start over only to hear that their insurance won’t be able to cover all

the costs.

Most Americans do not even realize they are underinsured, and many by up

to 20 percent. What you want out of your insurance coverage is the ability to rebuild

your home if needed, replace your personal property and belongings, cover injuries

and damages that occur on your property and any additional living expenses you

may have after the loss of your house.

Dwelling coverage is what you need if your house happens to burn down.

This will cover materials to rebuild the house and anything that may have been

attached such as a garage or porch. You need enough coverage to be able to

completely recreate your house if it were to explode. To calculate how much the

replacement cost will be, take the square footage and multiply it by the construction

costs which you can research these or ask your insurance agent. You can use an

online calculator to get a second estimate. Then ask your agent their expert opinion

to get a well-rounded amount you will need.

Next you’ll need personal property coverage, which will replace all your

personal belongings if an incident were to occur. Where you will start here is

making an inventory of everything you own. Yes, everything. Go through each room

and make a list of all your belongings. Take photographs of the expensive items so

that you have a physical record of it. This may seem like a tedious task but it will be

more than worth it in the long run.

Then comes the liability insurance. This will cover you in the event that

someone gets hurt on your property. If your lawn guy falls and breaks a bone your

liability coverage will keep you from a terrible drawn out battle. Any accidents that

happen on the property are covered so buy as much as you possibly can to prevent

long term struggles.

Don’t be bamboozled by getting the cheapest policy possible. Do your

research and ask your agent today.