Home Insurance Coverages You Should Never Sacrifice to Save Money
The current homeowner’s market has been challenging. As insurance agents, we spend much of our time quoting policies with soaring prices. We also see many quotes and policies from other agencies that don’t provide adequate coverage to save a few hundred dollars annually. While getting you the best rate is important, there are some coverages that should never be sacrificed.
We want all our neighbors to know their minimum coverage should include to avoid being shortchanged by someone who doesn’t have your best interest at heart. In order of importance, review these coverages on your home insurance policy:
1. Replacement Cost Coverage
Ensure your home is covered for Replacement Cost, not Actual Cash Value. Replacement Cost covers the amount needed to rebuild in the current economy, up to the policy limit. Actual Cash Value depreciates the property value over time, making it much less than Replacement Cost and likely insufficient to cover the cost of a new roof or house.
2. Hurricane Deductible
Your Hurricane Deductible should be less than 10%. This deductible is a percentage of your total home value, not the claim amount. For example, a 5% deductible on a $500,000 property means you’ll pay $25,000 for a roof claim—almost the cost of a new roof. Aim for a 2-3% wind deductible.
3. Liability Limits
Liability Limits should exceed the $100,000 minimum set by companies. Liability coverage pays for injuries or damages to others. In a time of rising medical costs, $100,000 may not be enough. Especially if you have a pool and there’s a risk of drowning, increase your coverage to at least $300,000.
4. Loss of Use Coverage
Did you know your insurance will pay for your lodging if you must be relocated from your home? Loss of Use covers hotel stays and lost income if you have a rental home. Increasing this amount doesn’t cost much but can save thousands in the event of damage. This coverage is often overlooked, so make sure it’s adequately included in your policy.
Conclusion
After reviewing these coverages, take a quick look at your policy to see if any of these tips apply. If you need a quote with one of the many companies we work with, give us a call at 850-244-1574 or submit a quote online.
Informational statements regarding insurance coverage are for general description purposes only. These statements do not amend, modify or supplement any insurance policy. Consult the actual policy or your agent for details regarding terms, conditions, coverage, exclusions, products, services and programs which may be available to you. Your eligibility for particular products and services is subject to the final determination of underwriting qualifications and acceptance by the insurance underwriting company providing such products or services. This website does not make any representations that coverage does or does not exist for any particular claim or loss, or type of claim or loss, under any policy. Whether coverage exists or does not exist for any particular claim or loss under any policy depends on the facts and circumstances involved in the claim or loss and all applicable policy wording.