numbers relevant to your home insurance

Important Home Insurance Values

Here are some of the values and figures that matter when it comes to your homeowners insurance.

As a homeowner, it’s important that you have the right amount of coverage to meet your home’s needs. Part of making sure that you have the right homeowners insurance in Plano, Texas is properly estimating and understanding the different values incorporated in your policy. To ensure that you have enough coverage, here are some of the values and figures you should understand.

Replacement Cost Value

Replacement cost value refers the amount of coverage that you have for your home. This value is based on how much it would cost to rebuild your home should it be completely destroyed. For instance, this figure factors in the cost of building materials, the cost of labor, and the cost of bringing your home up to code. It’s important that you properly estimate your home’s replacement cost value, as this figure represents the maximum amount that your insurer will compensate you for if you home sustains damage. If you set this value too low, you will be responsible for covering any claims that exceed your policy limits.

Value of Your Belongings

Your homeowners policy also provides coverage for your personal possessions. Generally, a standard homeowners policy will provide coverage for half of your belonging’s replacement cost value. Make sure you take the time to create a home inventory that details the replacement cost of each of your belongings. Once you can accurately estimate the value of your belongings, you can determine whether or not your policy is providing adequate coverage.

Home Insurance Deductible

Your deductible is the amount that you agree to pay towards repairs before your insurance kicks in. For instance, if you set a home insurance deductible of $1,000 and your home sustained damage, then you would pay $1,000 for necessary repairs before you could access your insurance coverage. It’s important to understand that your home insurance deductible and your premium have an inverse relationship. This means the higher your deductible, the lower your premium will be. While setting a high deductible will save you money on your insurance rates, be careful not to set your deductible too high. Setting your deductible too high can prevent you from getting insurance coverage when you need it the most.

These are some of the values and figures that are important for your home insurance.  Do you have more questions regarding your homeowners insurance in Plano, Texas?  Don’t hesitate to contact us at Tri-Star Insurance/HUB International.  Our dedicated professionals are ready to assist you with all your coverage needs.