Due to the sheer amount of advertising and marketing targeted at consumers for auto insurance policies, people have become more aware of their auto insurance coverage and cost. Homeowner 's insurance, on the other hand, is another matter entirely. These premiums are often seen as a necessity--embedded in your mortgage and escrow payments to the point where you aren 't really aware of what your coverage gives you. That makes it difficult to determine whether your coverage is correct or not.
To better understand where your insurance premium goes--and how to determine if you 're paying too much--you 'll need to understand the four areas that homeowner 's insurance covers. These areas include:
The cost to repair/rebuild your home 's structure in the event of a disaster
Replacement costs for your personal belongings …show more content…
It 's difficult for a layperson to estimate what the cost would be if a person slipped and broke their hip, or if an on-site injury required a trip to the hospital. What is easy to see is that these costs aren 't minor--and your coverage should be set with that in mind. You should likely take the advice of your insurance agent here, and when in doubt, aim high.
Living Expenses During Repairs
Your living expenses during a repair or rebuild could differ wildly from someone else. For example, if you have relatives nearby that would help you find lodging during the repair, your out-of-pocket costs would be considerably lower than if you required hotel accommodations for a month. Also, the cost of living in your area will have a significant impact on your total bill during this time.
However, you 'll need to estimate your time out of your home to understand how to set these values. A good rule of thumb is that a complete rebuild, under normal conditions, could take as long as three months. In times of crisis, this can sometimes be accelerated--however, if there are 55 dislocated families, you might be stuck waiting for a
To better understand where your insurance premium goes--and how to determine if you 're paying too much--you 'll need to understand the four areas that homeowner 's insurance covers. These areas include:
The cost to repair/rebuild your home 's structure in the event of a disaster
Replacement costs for your personal belongings …show more content…
It 's difficult for a layperson to estimate what the cost would be if a person slipped and broke their hip, or if an on-site injury required a trip to the hospital. What is easy to see is that these costs aren 't minor--and your coverage should be set with that in mind. You should likely take the advice of your insurance agent here, and when in doubt, aim high.
Living Expenses During Repairs
Your living expenses during a repair or rebuild could differ wildly from someone else. For example, if you have relatives nearby that would help you find lodging during the repair, your out-of-pocket costs would be considerably lower than if you required hotel accommodations for a month. Also, the cost of living in your area will have a significant impact on your total bill during this time.
However, you 'll need to estimate your time out of your home to understand how to set these values. A good rule of thumb is that a complete rebuild, under normal conditions, could take as long as three months. In times of crisis, this can sometimes be accelerated--however, if there are 55 dislocated families, you might be stuck waiting for a