5 Essential Home Insurance Tips Every Homeowner Should Know

Your home is likely your largest investment. Here are five crucial tips to ensure it’s properly protected.

1. Understand Replacement Cost vs. Market Value

Your home’s market value and replacement cost are different:

• Market Value: What you could sell your home for
• Replacement Cost: What it would cost to rebuild your home

Insure for replacement cost, not market value. Land doesn’t need insurance, but your home does.

2. Document Your Belongings

Create a home inventory:

• Take photos or videos of your possessions
• Keep receipts for major purchases
• Store documentation off-site or in the cloud
• Update regularly

3. Review Coverage Limits Annually

Your coverage needs change over time:

• Home improvements increase value
• New purchases need protection
• Construction costs fluctuate
• Inflation affects replacement costs

4. Understand What’s Not Covered

Standard policies typically don’t cover:

• Floods (requires separate policy)
• Earthquakes
• Maintenance issues
• Certain high-value items
• Home-based business equipment

5. Know Your Deductible Options

Higher deductibles mean lower premiums, but consider:

• Your emergency fund
• Risk tolerance
• Frequency of claims in your area

Bonus Tip: Work with a Local Agent

A local agent understands:

• Regional risks (hurricanes, flooding)
• Local building codes
• Area-specific discounts
• Claims processes

Conclusion

Home insurance doesn’t have to be complicated. With proper planning and the right agent, you can ensure your home is adequately protected.

Need help reviewing your home insurance? Contact us for a comprehensive policy review.