5 Essential Elements of a Home Insurance Policy

​It's not enough that you're preparing for retirement. You might be planning to spend your senior years in the Caribbean beaches. However, if you're not planning to take care of your home insurance policy, you can't enjoy any good retirement. Here are five essential elements that you should consider before buying home insurance.

Replacement Cost
The worst thing that could happen to a homeowner is replacing the whole house after a tragedy. If you buy coverage that contains replacement cost, it's the cost of your home's market value during the time of the claim. Make sure that the replacement cost would at least offset the cost of labor after a major disaster. Thus, the request for guaranteed replacement cost coverage.  

Contents
Ensure that your home insurance policy can at least provide coverage for 50 percent of the value of all your belongings. This may increase your premiums, but you can buffer it with a higher deductible anyway. Also, make sure that you purchase another rider if you have high-value items like antiques, jewelry, and firearms. 

Liability
Another fundamental part of the coverage of every homeowner is a liability. This protects you from any lawsuit from any person injured in your property. The liability coverage will pay for your damages. It will cover you against lawsuits resulting from dog bites, a tree that wrecks the neighbor’s house, and minor accidents of a visitor or stranger. If judges in your area award people with $1 million in damages, then you should have the same amount of liability coverage or even more. 

Personalization
No two houses are the same. Thus policies would vary. However, you need to purchase the add-ons that your house will specifically need. For example, the presence of a guest cottage requires displacement coverage. You should also get flood coverage as well as individual riders depending on where you live.

The Insurer’s Reputation
You may be choosing your next home insurance policy depending on the range of prices of premiums. However, don't underestimate the reliability and credibility of the company. Look for those that are financially sound, especially with high ratings. Check out how often people complain against them.

Some Final Words
There are many things that you shouldn't forego thinking about when buying home insurance. Home insurance is not a joke. If you don't have insurance, you'll be sure to file for a loan. That's the worst thing you could do to yourself, especially when you're a senior already. Get home insurance policy for your home, but make sure that you consider these five things.

At Black And Associates Insurance, we aim to provide comprehensive insurance policies that make your life easier. We want to help you get the insurance that fits your needs. You can get more information about our products and services by calling our agency at (509) 464-0058. Get your free quote today by CLICKING HERE.