Homeowner’s insurance is a curious thing. Every mortgage company requires it, so for most homeowners, it’s mandatory. Only the fortunate few who own their homes outright are free from the obligation of insurance. So…for the rest of us, we are expected to wade through the hundreds of options and expected to make a wise decision. So how are we to decide? And most importantly, how much insurance does one need?
Fortunately, with a few tips and some common sense, most homeowners can make an educated decision. Homeowner’s insurance is designed to protect the investment of you home. It’s not designed to make you rich or to leave you broke. In the worst-case scenario, you shouldn’t be financially ruined. Likewise, you shouldn’t come out ahead either.
Homeowner’s insurance is all about the replacement cost of your home (all structures on your property) and their contents. It’s the contents part that gets complicated. It’s fairly easy to calculate the replacement cost of a home. There is a lot of data available to insurance companies about building materials (bricks and boards) and labor to come pretty darn close to what it costs to replace your home. But it’s the contents that can vary dramatically. And that’s where you come in. You should have a very honest conversation with your insurance agent. They need to understand what you own and what you don’t own so that you are charged a fair price.
Some people like jewelry. Others like electronics. Even others like cars or other collectibles. All of these things are charged at different rates, so it’s important to talk about what you own and what insurance is required.
Another category to discuss is flood zone or extra insurance for a basement. Bottom line – ask questions. Tell the agent what you own and compare rates from multiple companies. That’s the advantage of an independent agent. We can provide multiple quotes simultaneously.
To learn more, contact your independent Provident Insurance agent. We serve Plainfield, Greenwood, Avon, Brownsburg, Indianapolis, Carmel, Zionsville and the entire central Indiana area. Stop in one of our convenient locations to discuss your insurance needs today.
