For most people, buying a house is the most important investment they will ever make. It is also one of the most expensive. The median price for a typical home in the United States can range from just over $100,000 to more than $600,000, according to a 2020 report from Business Insider. The median home value in the United States, according to the report, is $247,084. But a house is more than just a monetary investment. It’s a home that provides shelter, growth, family bonding and security.
It’s vital to protect the house with adequate property insurance. Here are some things to consider when evaluating insurance coverage:
- Contents. So often people undervalue or overlook the contents of their home. It’s important to ensure the contents are adequately covered in the event of a catastrophic loss. A good practice is to take photos of your items and store the images offsite or in a fire safe.
- Deductible. A deductible is a cost that the insured absorbs before the insurance kicks in during a loss. A higher deductible can reduce the insurance rates, but it’s important to have cash available to cover the claimant’s portion of the cost.
- Replacement. This type of coverage will replace the damaged or destroyed property without accounting for depreciation. Property should be insured for 80 percent of its value.
- Coverage. Insurance policies can be written to cover certain types of loss, such as from fire, weather or theft. Flooding often isn’t covered in a standard policy;
- Discounts. Many insurance companies offer discounts for bundling other types of insurance like life or auto.
- Mortgage. Many banks and mortgage companies require their borrowers to carry property insurance to cover outstanding balances in the event of a loss. Make sure the mortgage company is listed as a beneficiary on the policy.
An insurance policy is a legal contract that spells out each party’s rights and responsibilities. It should be read carefully and understood completely. It’s also a good idea to review insurance policies annually and make adjustments as needed.
At IMAC, we work with organizations to provide their members with adequate home insurance at affordable rates. Your members deserve the peace of mind a comprehensive property insurance policy provides. Home insurance is a great member benefit that can build loyalty and help your bottom line. Call us today to get started.