Home Insurance 101: How Much Homeowners Insurance Do I Need? 

The housing market is constantly fluctuating and so is home insurance— staying connected to a local insurance broker is critical.  The different types of homeowners insurance and available rates are ever-changing. Re-evaluating what and how much you need covered is essential to saving money and having proper coverage. Here is a breakdown of the different types of home insurance and what they mean. 

 

Types of Homeowners Insurance

 

Dwelling

 

This type of coverage is for repairs or rebuilding your home when or if damage occurs. This damage will need to fall under the coverage you choose— this can be fire, windstorm, hail, lightning or, in some cases, vandalism. 

 

To calculate this type of homeowners insurance, you’ll need to start with the estimated cost to rebuild your house (this is not your market value). Review your mortgage or talk with your lender about a required dwelling coverage (limits and deductibles). 

 

Other Structures

 

This type of homeowners insurance covers anything outside of your home. This includes detached garages, sheds and fences. Look into what is already covered with your existing coverage. Most insurance policies cover some portion of structures outside your home. 

 

Personal Property

 

This coverage is pretty straightforward. Insurance will cover personal items like furniture, clothing, jewelry, etc. if they are damaged or destroyed by issues in your policy. 

 

This type of homeowner insurance is entirely up to you and your preference. Ask yourself if you want the actual cash value personal property coverage (generally included in your homeowner's policy) or optional replacement cost coverage. 

 

Loss of Use

 

This type of homeowners coverage is also called Additional Living Expenses (ALE) or Coverage D. It covers any expenses that occur during home repair (if the damage was under-covered by the policy). 

 

Personal Liability

 

Suppose the members of your household are responsible for causing injury or damage to property or persons. In that case, this particular homeowners insurance will protect you or the member of your house. 

 

Ask your insurance broker what the minimum policy coverage is, and then adjust to your personal preference. 

 

Medical Payments

 

When accidents occur on your property, this specific medical coverage will ensure that all the medical bills from the accident are covered. Talk with your local insurance broker about the policy limits and the minimum amount of coverage they offer per person. 

 

If you are looking for additional "add-on" coverages to these plans, a few standard types are Additional Replacement Cost Coverage, Personal Property Coverage Replacement, and Special Personal Property Coverage. Talking with your local broker will help guide your decisions and protect you in the future. Your local Joplin insurance brokers at Beimdiek take these policies and coverages seriously. We are honored to join you in this process and look forward to getting you protected and saving you money.