The Pros And Cons Of Liability Coverage

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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
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If you were to lose all of them in one shot, you 'd need to replace them immediately--eliminating the option of shopping for a reasonable price. Also, technology items might not even have a current model that acts as a suitable replacement. You 'll want to use the cost to replace them with current options--not the choices you made 5 years ago or more.

Liability Coverage

Medical costs continue to rise. 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

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