If you own a house in Atlanta, GA, you understand that home insurance is worthwhile. But do you know whether you have adequate home insurance coverage? Purchasing enough home insurance ensures that you don’t incur out-of-pocket expenses when the unthinkable strikes. If you are unsure whether you are carrying the right amount of home insurance coverage, read on as Rob Hill Insurance Group provides a guide.
Understand the difference between replacement cost and actual value
When a covered peril destroys your home, your insurance company compensates you with either the replacement cost or actual value. What’s the difference between the two? The actual value is the value of your house less depreciation. This amount doesn’t cover the cost of your house fully. The replacement cost is more ideal since it repairs or rebuilds your home to its prior state, regardless of your house’s actual value.
Get to know your local building costs.
The essence of purchasing home insurance is to have your house repaired or rebuilt when damage occurs. To that end, you need to research how much it would cost to rebuild your home to its current state in case of total loss. This way, you will update your home insurance policy with the correct value for your home.
How do you use your house and who uses it
Do you throw parties in your house? Do you have pets like dangerous dogs in your home? The answer to these questions will determine if you need to increase your liability coverage. If the chance of causing property damage or bodily injury to neighbors is high, you need to increase your home liability coverage or consider umbrella insurance.
Home insurance in Georgia
Home insurance needs differ from one person to another. Since there is no one-size-fits-all home insurance plan, at Rob Hill Insurance Group, we customize home insurance plans to fit various needs. Contact us today for a quote.