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Buying the Best Home Owners Insurance Coverage

Author: Alston Balkcom

Although you may be spending more for other types of insurance such as car insurance or medical insurance, home insurance can cost a substantial amount of money. Getting a good deal starts with shopping around with different carriers or having a reputable insurance broker do the shopping for you.

Benefits are at least as important as cost. A cheap home owners insurance plan that won't cover you will is a bad plan at any price.

Your home insurance plan probably offers benefits that you have never thought of. It can pay you if your house is burned down or if your personal property is damaged. It can also pay a third party if you injure them due to a negligent act. This is true even if that act takes place far from your home. It can also reimburse you for living expenses when you are unable to live in your home due to a covered event.

The benefit that most people focus on is the part that will pay you if your house is in a fire or is damaged by some other covered peril. This is probably the most important coverage. It is important to get the adequate coverage limits for this aspect of your plan.

Determining the right amount of coverage is not as easy as finding out the market value of your home. Your insurance company will not use the market value when deciding what to pay you to replace your home.

There are two reasons why the market value is not relevant. This amount required to rebuild your home can be much higher or much lower than the cost to purchase a similar structure. The insurance company is not required to replace the land your house sits on.

The cost of the land and the location of your house are part of your potential sales price. They are not directly involved in the calculations required to determine replacement value.

Another critical benefit of a standard home insurance coverage is the benefit limits for your house's contents. Things like your couch, your stereo and other much of your other portable personal property is covered by the contents benefit limit.

Things that are permanently attached to your home are usually considered part of the house and add to the replacement cost for the house and are not considered contents. A wall to wall carpet will probably be considered a part of the house. A throw rug will probably be considered one of the house's contents.

You may have some latitude in determining how your house's contents are covered. You may be given the option of having your contents replaced using their depreciated value or the replacement cost.

Typically you will not be asked to determine an exact dollar figure for this benefits. You may be given the option to have your other possessions covered. 50% or 70% of the replacement value of the house.

Certain possessions like your diamond rings and cash will have limited coverage in the standard coverage. However, you should be able to request additional benefit limits for jewelry. Most of the other benefits of your homeowners coverage are not changeable by the consumer. They are part of the standard policy.

Buying the best house owners insurance policy is a part of intelligent long-term planning. Make sure to make your decisions after comparing both coverage and premium.

You can find Nevada house insurance quotes on the author, Alston J. Balkcom's site. His recent blog posts include: Get Car Insurance Prices Online.

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