Make Sure You Have Enough Homeowner’s Insurance

You never know if and when something will happen — whether it’s a big catastrophe or something less destructive – so you need to be prepared!

It’s essential to choose the right company, the right price, and the right coverage for your specific situation.  

Keep in mind, homeowners insurance is really a collection of different kinds of coverage such as fire, theft, liability and earthquake wrapped up into a single policy.

Whether you’re a current homeowner who may need to upgrade your coverage or a potential new buyer who is purchasing home insurance for the first time, review these steps so you have the right coverage for YOU:

How Do You Determine Coverage?

Your coverage should be based on the square footage of your home, but it must also factor in how much it will cost per square foot to rebuild in case of disaster.   

Your insurance company will most likely require you to purchase coverage that insures 80% of the replacement value of the home.

Be sure to take into consideration everything that you have inside the home, which will also need to be replaced in the event of disaster.

Do You Have Enough Coverage?

Get current information about what your home is worth today, and how much it would cost to rebuild it. 

Make sure that your deductible is set at a price that you can afford in the event that you must rebuild or do extensive repairs to your home.

If you’ve got a special art collection or a home office with equipment and supplies, you should be sure to let your agent know so that they can inform you about any additional riders that might be necessary.

What About Flood Insurance?

Depending on the location of your home, you might not need flood insurance, but talk to your agent about coverage for flooded basements that tend to occur in some areas near the water.  

Being covered for the water damage from a flood in your basement is different than having flood insurance.  Talk to your insurance agent about the difference and make sure you’re covered if you end up with water in your basement, which can be a real pain.

Fire Insurance

A lot of the homes in Madera County are in a High or Very High Fire Hazard Zone. This greatly impacts the type of homeowner’s insurance you can obtain. A lot of companies may charge very high premiums or not cover your home due to its location and the level it is in. Be sure to get multiple quotes from LOCAL insurance providers since they know the ins and outs of the area well. You may be limited on choices, but it’s best to know sooner rather than later so you can take action.

Do You Need to Upgrade?

For current homeowners, meet with your insurance agent to discuss what coverage you have now and let them know about any new home improvements or any new possessions that should be included in your policy. You may also be able to lower your premium depending on how cleared your property is for wildfire danger.

Your agent will come out and document these upgrades, take photographs, and let you know if you will need additional coverage.

Need help finding some recommendations for homeowner’s insurance, just e-mail me and I’ll give you some of my favorites!