One of the biggest risks in insurance is never buying enough coverage. Imagine filing a claim only to find that you don’t carry adequate insurance. Isn’t that frustrating? Unfortunately, 3 out of 5 homeowners are underinsured in America. The good news is that you don’t have to be part of these statistics since Insurance Solutions of Texas of Sugar Land, TX is guiding you on how to carry the right amount of home insurance.
How much dwelling insurance should I have?
If you have a mortgage, the first step is to satisfy the lender’s insurance requirements. However, this doesn’t mean that’s what you should settle for — it’s only the foundation to build on the amount of insurance needed.
The ultimate guide of how much home insurance is required is the replacement cost of your home. How much will it cost to replace your home from the ground up? That would be the amount of home insurance needed. When computing the replacement cost, consider factors like renovations, current building material costs, and new building codes.
How much contents coverage do I need?
How much will it cost to replace all the stuff you own? That’s the amount of personal contents coverage required. Come up with a home inventory that includes everything you own. This ensures all assets under your possession are insured.
For high-value items like jewelry, you need to look out for "riders" or "endorsements" because typical home insurance provides limited coverage.
How much liability insurance do you need?
This is usually a tricky one because you never know the liability claims to face at any given time. However, to be safe, purchase $300,000 of liability coverage or $500,000 if you can. For higher coverage, consider umbrella insurance.
Still not sure about how much home insurance you need? Don’t worry. We won’t let you walk the journey alone. If you are in Sugar Land, TX, and its environs, please partner with Insurance Solutions of Texas for all your home insurance needs.