Understanding your home insurance policy.
Your home is castle, and it’s only natural to want to protect it as best you can. There’s only so much you can do, but for everything else, there’s homeowners insurance. To help you understand the numbers in your home insurance policy, read on.
Replacement Cost Value
This is the amount for which you insure your home. It’s based on what it would take to rebuild your home today. This figure will incorporate costs for materials, labor, and even bringing your home up to the current code. Bear in mind that the replacement cost value is independent from market value, which is the price your home would sell for on the real estate market.
Home Insurance Deductible
The deductible is what you will pay out of pocket before your insurance coverage kicks in while filing a claim. When you choose a higher deductible, you are taking on more responsibility for the cost of repairs. Due to this, you may be awarded a lower premium. What you might not realize is that you have a standard deductible for most incidents, such as fire, theft, and lightning, and another deductible for incidents like high winds and hurricanes. The standard deductible is often represented as a dollar figure whereas the other could be represented by a percentage.
Value of Your Personal Belongings
All of your personal possessions add up on cost. The standard homeowners policy sets your personal property coverage at 50 percent of the replacement cost value. For this to be effective, it’s wise to conduct a home inventory to record all of your belongings and their belongings. Be sure to include appraisals, receipts, videos, and photos of your possessions. You can also allocate coverage for specific items, such as large ticket items like jewelry, which may otherwise be subject to policy limits.
Are you ready to get started on securing the right homeowners insurance in Fresno for your home? Visit the professionals at McCarty Insurance Agency to get started today! We can help you understand the ins and outs of your chosen policy.