Here are two of the important figures relevant to your home insurance.
If you are a homeowner, then you undoubtedly want to find the right insurance for your home. Part of finding the right coverage is understanding the values and figures that affect your homeowners insurance. Curious to learn more? Here are two of the important figures you should understand.
Replacement Cost Value
Replacement cost value refers to the amount of coverage your policy offers for your home. Ultimately, this value represents the amount of money it would take to completely rebuild your home. This value takes into account the cost of building materials, the cost of labor, and the cost of bringing your home up to code. It is incredibly important to properly estimate this value, as it represents the maximum amount of coverage that your insurer will offer for your home. If you estimate this value too low, then you might have to pay out-of-pocket for any claims that exceed the amount that you estimated.
Value of Your Belongings
Your homeowners insurance also covers the cost of replacing your personal belongings. Generally, a standard homeowners policy will cover up to half of the value of your personal possessions. The best way to determine the value of your belongings is by completing a detailed home inventory. Once you know the value of your possessions, you will be able to determine whether your home policy is offering enough coverage for your belongings.
These are two of the figures that are important for your home insurance. Do you have more questions regarding your homeowners insurance? Don’t hesitate to contact us at Gant Insurance Agency in McKinney, Texas. Our dedicated team is ready to assist you with all your insurance needs.