Whether you are planning on purchasing your first home in the near future or are simply analyzing your current homeowner’s insurance policy, you may be wondering just how much home insurance coverage you really need. Specifically, you may be wondering whether or not insuring your home at market value is the best way to go.
Are you a homeowner looking for comprehensive homeowners insurance at an affordable price? If so, American Tri-Star offers cheap homeowners insurance in San Diego, CA, helping homeowners to protect their valuable investment.
In general, insuring your home at market value is a good way to save money on your homeowner’s insurance policy. Essentially, doing so will allow you to claim up to the amount of your home’s market value at the time of purchase in the event of a disaster. All homeowners should at least have this much coverage. However, in some cases, insuring at market value may not be enough.
An example of such a situation where market value insurance would be inadequate is in the event that the home needs to be entirely replaced as a result of a fire, storm, or other disaster. Unfortunately, market value home insurance will not cover the costs of labor and other aspects of rebuilding the home, thus leaving the homeowners with a hefty portion of the bill.
Fortunately, by simply insuring one’s home at replacement value as opposed to market value, you can avoid this possibility in the first place. Yes, it will result in having a higher premium and thus higher monthly payments on your home insurance, but you will be able to enjoy the peace of mind that comes with having a comprehensive home insurance policy.
Of course, each situation varies depending on the homeowner and type of home, so it’s always best to consult with an expert insurance specialist to ensure that appropriate amount of insurance is provided. To learn more about comprehensive insurance packages in San Diego, visit our website at www.americantristarinsurance.com or contact an expert insurance agent directly at 619-272-2100.