Homeowners Insurance

When it comes to insuring your home, make sure the policy reflects the cost to rebuild the home today — don’t just rely on the purchase price or appraisal value. Also, assess the replacement value of your belongings, which policies usually limit to between 50% and 75%. If it isn’t already built into your policy, ask for replacement coverage — otherwise you’ll end up with just the depreciated value of anything that is damaged or stolen.

There are several types of homeowners insurance:

• HO-1-Basic: Basic coverage; covers dwelling and personal property against losses from 11 types of perils
• HO-2-Broad: Basic homeowners, plus protection against six more perils
• HO-3-Special: Extended or special, covers 17 stated perils plus anything not specified in your policy, except flood, earthquake, war and nuclear accident. Most homes are covered by these policies
• HO-4-Tenants: Renters insurance for personal property only
• HO-5-Comprehensive: High-risk coverage
• HO-6-Condo: Condominium insurance, which covers personal property and certain building items
• HO-7-Mobile Home: Mobile home insurance
• HO-8-Older Home: Basic older home coverage. Differs from HO-1 in that it covers repairs or actual cash values — not rebuilding costs

You can also get additional coverage, such as flood insurance and rider insurance, which covers things like expensive jewelry or antiques.

Also, consider your deductible — the more you pay out of pocket, the more you save on premiums.

 Having insurance is the best way to protect your financial plan. The bottom line “Fun is like life insurance; the older you get, the more it costs.”― Kin Hubbard