Do You Have Enough Coverage to Rebuild Your Home?

Catastrophes do happen. And the meaning of the word all by itself should be enough to give you an estimation of how much damage this can cause to your property. In order to protect the large investment you have put into your home, getting insurance coverage is a must. You may already have one, but the question you have to ask yourself is: do you have enough coverage to bring your home back from the ashes?

Whenever a disaster strikes, the safest thing to do is to anticipate the worst damages and be prepared to deal with it. The idea might sound a little backwards, but it does work if your goal is protecting your investment. It's best to think about having full insurance coverage for your house well before misfortune decides to pay you a visit.

Partial Coverage

Due to the stress that the economy has put on homeowner's pockets these days, the majority of insurance companies have made their insurance policies more affordable, in lieu to the absence of full coverage. In other words, cheap home insurance is easily available on the market if you are only interested in protecting certain parts of your home from certain types of damages. Partial home insurance coverage deals with the repairs of specific portions of your home, from the damages caused by specific incidents.

Some examples of partial coverage are buildings and contents insurance policies, fire insurance, theft and vandalism insurance coverage, and basic repair insurance. Take note that the availability of these coverage policies will vary from company to company. This type of coverage is more flexible because you can decide on which risk factors to brace for and which parts of your home to insure.

Replacement Cost Coverage Policy

If you are serious about being able to rebuild your home in the unfortunate event that catastrophe does strike you will need a home insurance policy that includes replacement cost coverage. With this policy the amount of coverage is a set dollar figure and will be stated in your policy.

This figure will have been calculated in advance based on information you provided about the house’s size, location, number of rooms, amenities, building materials, etc. It is recommended that you also get at least one estimate of the cost to rebuild from a current home builder. Compare this amount to your policy’s coverage limit to help you determine if you have the right amount of coverage.

In addition you might also want coverage for living costs and personal possessions included in your policy. These include:

- Living costs while your home is being rebuilt
- Replacement costs for personal possessions
- Additional coverage for expensive items such as jewelry, electronics, etc.

By Matt Reynolds - Google+

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