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Home Much Homeowner’s Insurance Do You Really Need?

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Estimate the cost to rebuild your home.

Estimate rebuilding costs is essential when selecting homeowner’s coverage limits. Keep in mind that the cost to rebuild your house might be different from the price you paid for it.

Market value fluctuates, so take into account the age of your home and local rebuilding costs in your area.

Assess the value of new features in your home.

Have you renovated your home? It’s important to include the value and materials in your coverage estimation.

Take an inventory of your personal property.

Homeowner’s insurance covers the cost to replace your possessions if they were to be stolen, damaged or ruined (as long as they’re a covered loss). It’s important to know what your belongings are worth, so take a home inventory.

Estimate the value of unique or expensive property. You may have valuable item’s in your possession, such as jewelry or rare art work. Homeowner’s insurance can cover these types of items, but, it might provide low limits that do not fully cover the actual value of these items. If you own unique or expensive items. talk to your agent about adding a personal property floater, also known as a rider. The additional coverage insures individual valuables with limits beyond what your homeowner’s policy can deliver.

Consider your assets. To determine how much liability coverage you need, it’s important to consider your net worth and what liability coverage limits would be enough to protect you. You might also want to consider an umbrella policy for additional coverage.

Approximate additional living expenses. If ever there were damage to your home, would you be covered to live elsewhere while you’re home was being repaired or rebuilt? Take your needs and daily expenses into account when determining your homeowner’s insurance needs for temporary living expenses.

Homeowner’s Insurance Tips for First-time Home Buyers
Purchasing your first home can be both nerve-racking and exciting! Your home is often you biggest investment so, protecting that investment with the right homeowner’s insurance is especially crucial. Here are a few smart actions you should take when purchasing your first home insurance policy:

  • Explore Your Options. When seeking a quote, remember that many factors determine your home insurance premium- such as the amount of coverage, location of a home and fire safeguards, so it is important to shop around.
  • Bundle Your Policies. Purchasing both your auto and homeowner’s policies with same insurer can result in significant discounts.
  • Identify additional ways to save. Preventive safety measures such as a home alarm system, fire alarms and sprinklers can reduce premiums, so be sure to invest in safety features in your new home.
  • Assess risk. Homeowner’s insurance is not “one size fits all”. There are several types of homeowner’s policies, and the right type of policy for you depends on several factors. A licensed insurance agent can help you assess your risk and determine your needs.

Dana Ash-McGinty

Principal Broker | Realtor® | “The Real Estate Maven”

Dana Ash-McGinty is the Principal Broker of ASH | MCGINTY, a Washington, DC Real Estate Brokerage. This real estate maven has 15+ years experience in residential, commercial and land sales in addition to multi-state residential renovation, re-zoning, and condo conversion projects. A sought after real estate authority, she has been featured on CNN and in various real estate and financial publications. Dana is married to the highly esteemed Dr. Dana W. McGinty, a Washington, DC based internal medicine physician. They are often referred to as “The Danas”.