The Pros And Cons Of Liability Coverage
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 …show more content…
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.
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