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Homeowners insurance can offer financial assistance if something unexpected happens to your home, such as a fire, theft or vandalism. Knowing you have a financial cushion to help you recover from unexpected expenses can provide peace of mind.
What Is Homeowners Insurance?
Homeowners insurance can cover losses and damage to a policyholder’s house as well as personal belongings inside the home. Additionally, it may provide liability coverage against accidents around the property and beyond.
What Is the 80% Rule in Homeowners Insurance?
The 80% rule is an insurance industry standard that says a homeowner must purchase coverage equal to at least 80% of the home’s total replacement value. If the coverage is less, the insurance company may only pay a portion of the expenses for a claim.
How Much Does Home Insurance Cost?
Home insurers consider several factors that allow them to evaluate the risk of insuring a specific property. These factors include the following:
- Location
- Building materials
- Age of the home
- Claim history
- Deductible amount
- Coverage limits
How Much Home Insurance Should I Have?
Determining the right amount of home insurance depends on the value of your property and possessions. A good rule of thumb is to have enough coverage to rebuild your home from scratch and replace your belongings. Keep in mind that the replacement cost should include any associated costs that might have changed since the home was built, such as changes to local building codes.
Additionally, it’s recommended to have liability coverage to safeguard against lawsuits for damage or injuries you or your family are responsible for.
Where to Get Home Insurance
Choosing the best home insurance requires careful consideration of your needs and the specific risks in your area. If you live in or around Lee’s Summit, Missouri, agents at Morehead Agency LLC can help you find optimal and affordable homeowners insurance. Contact us today.
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