Your home is most likely your biggest investment so you’ll need to protect it with a comprehensive homeowner’s insurance policy. This is especially true if you hold a mortgage because the lender will want to know who will guarantee the loan should some catastrophe occur.
Your independent insurance broker will help you determine the cost of rebuilding your home so be sure to have all the house specs handy, such as square footage, building materials used, and number of rooms. You should also ask about how they calculate the cost of replacing your possessions. Some insurance companies recommend taking photos of your valuables, such as your jewelry, electronics and furniture. It’s much easier to flip through a photo album of your possessions rather than trying to remember every little thing when faced with an emergency.
Replacing lost valuables isn’t the only purpose of a homeowner’s insurance policy. There is also liability protection in case someone visiting your home is injured. This may be the neighborhood child looking for a playdate or it may be the satellite television installer who has to climb up on your roof. We live in a litigious society and having adequate liability insurance is a must these days.
Some valuable items, such as expensive jewelry or an art collection, might require a rider policy to cover the full replacement amount. This is due to each company’s insurance limits, which often vary from state to state, and each piece would need to be appraised for its current value before a rider policy is written up.
As a landlord, it is your responsibility to obtain insurance coverage for the main structure of the property as well as any other garages or sheds that are on the property. Landlords should also protect themselves with enough liability insurance in case of a lawsuit and landlord insurance should also cover any appliances or personal items that the tenants have permission to use.
Tenants, however, are responsible for insuring their own personal possessions, such as clothing or furniture. There are specific renters’ policies for these cases and it’s always wise to inform your tenants that they are responsible for insuring their own possessions.
Always speak to an independent insurance agent to customize an insurance policy for your exact needs, call us 716.684.3203Get A Free Quote