Home insurance covers damage to your home, its contents, and your belongings in the event of a loss. The type and amount of coverage you need will depend on your personal circumstances and risk tolerance. If you purchase less coverage than you need, you’ll save money now but risk running out of money to make repairs if disaster strikes. If you overbuy, on the other hand, you’ll pay higher premiums but won’t run out of money to repair damage. Here are some common home insurance risks to help you determine how much coverage you need:
Fire and Lightning
The cost of rebuilding a home after a fire is about $100,000 on average, according to the Insurance Information Institute. The average cost of replacing contents is about $30,000. If your home is located in an area with a high risk of fire, you may want to consider increasing your coverage to account for the higher replacement cost. If there’s been a recent change in your neighborhood such as new construction or a nearby wildfire, you may want to increase your coverage based on those circumstances.
Burglary
The average cost of repairing a burglary is about $32,000, according to the Insurance Information Institute. The average cost of replacing stolen items is about $9,000. If your home is located in a high-risk area for burglary, you may want to increase your coverage. If your home is in an area with a high crime rate, you may also want to consider increasing your coverage to account for the higher risk of burglary.
Water Damage
The average cost of repairing a water-related disaster is about $32,000, according to the Insurance Information Institute. The average cost of replacing damaged items is about $9,000. If your home is located in a high-risk area for water damage, you may want to increase your coverage. If your home is in an area with a high chance of water damage, you may also want to consider increasing your coverage to account for the higher risk of flooding.
Moss Growth and Infestation
The average cost of repairing a moss or insect infestation is about $32,000, according to the Insurance Information Institute. The average cost of replacing damaged items is about $9,000. If your home is located in a high-risk area for moss or insect infestations, you may want to increase your coverage. If your home is in an area with a high chance of moss or insect damage, you may also want to consider increasing your coverage to account for the higher risk of infestation.
Conclusion
Home insurance is designed to protect your home and its contents from a variety of possible perils. The cost of rebuilding or replacing your home can be very high, so it’s important to choose the right amount of coverage. It’s important to understand the different types of coverage and what each one does so that you can make the most informed decision when purchasing a policy. If you want to make sure you have the right amount of coverage, contact an agent today.