1. I AM CONFUSED ABOUT THE AMOUNT OF HOMEOWNERS INSURANCE COVERAGE I SHOULD BUY FOR MY HOME. HOW MUCH IS ENOUGH?
Most people find that "enough" means a sufficient amount to rebuild their home. Remember that the foundation and the land are not covered under the policy and therefore will not figure into an insurance settlement. When determining the replacement cost of your home do not use the sale price, the tax assessment or the value the mortgage company calculated. All these can vary greatly from the construction costs. Also, if your home is non-standard, such as a home with unique features including ornate or hand-carved woodwork, stainedglass windows, etc., make sure you bring this to your agent’s attention. These are considerations that might not be addressed in a standard homeowners’ policy replacement valuation, unless you bring it to your agent’s attention prior to the underwriting of the policy. If you don’t, you may discover you are underinsured when you have a claim. You should also evaluate your personal belongings and ask your agent about the options for covering these items. Finally, most homeowners’ policies include personal liability protection. Be sure to speak with your agent concerning your liability coverage needs.
Source: Massachusetts Department of Insurance
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05/20/2012 03:35:42 AM
