When you purchase a home it is standard procedure, and in some cases required by lenders that you take out a homeowner’s insurance policy to protect your home, its contents, and your assets should you experience a loss in the event of a fire, flood, theft, accident or natural disaster.
Standard policies will protect against fires and accidents, but when it comes to floods, earthquakes and other natural disasters you may need more than the basic coverage offered and typically it will require an additional policy. You may also need to take out additional policies should you have any high-ticket items, collectables, or heirlooms you would like to protect for their full replacement value. There is a limit to how much you will be compensated for and each insurance company has their own way of calculating a replacement value. Some provide an actual cash value, while others provide a replacement cost. It is important you understand what you will receive should you suffer a loss in detail before signing the dotted line.
How much Homeowners Insurance coverage do you need?
Deciding how much coverage to take out should not be a shot in the dark. How much money would you need today to rebuild, furnish and supply your home if it was destroyed? Get appraisals, estimates, put a price tag on everything, and calculate it. You will probably need more than you have or are asking for. Be sure to re-visit your policy yearly and adjust it as things change.
When do I file a claim?
If there is an accident, theft or major loss you want to file a claim immediately. If there is minor damage and is something you can fix yourself or hire someone to fix for less than your monthly mortgage payment, you probably will not want to file a claim. The insurance premiums go up the more often you file a claim.
Questions about homeowner’s insurance claims? Please contact us.
Millard & Bragg Attorneys at Law P.C. practicing law in both Oregon and Washington.