Get The Right Missouri Home Insurance Coverage For Your House

How Much Home Insurance Do You Need?

Home insurance – also called homeowner’s insurance and residential insurance – typically covers you for damage to the contents of your home and to the building, itself.  It also offers liability coverage in case someone is injured while on your property, even if it was not your fault, and will protect you if you are sued by the person who was injured.

Generally speaking, there are four types of home insurance available to the home owner:  property damage, personal liability, medical payment, and coverage for additional living expenses.

Determining how much homeowner’s insurance you need to purchase is essential for you when you start shopping for home insurance, because your quotes will be based on what you need to cover.  Here is what you need to consider.

First, you need property damage coverage.  That is for when and if your home is damaged due to a fire or other, unforeseen event.  Most insurance experts recommend that you insure your home for 100% to 120% of the home’s current value, to take into account the costs of rebuilding should the home be damaged beyond repair.  Note that you will need additional insurance coverage for events such as earthquakes and floods.  Additionally, your property damage will cover items within the home, but you may require additional riders for items such as art, antiques, a home office, collectable items, etc.

Second, personal liability insurance is an essential component of your homeowners insurance, because it protects you if someone is injured while on your property and chooses to sue you.  Personal liability also provides coverage if you damage someone else’s property in an accident.

Third, medical payment coverage is needed in case someone is injured in your home and needs to seek medical attention and care.  This will prevent you, the homeowner, from being responsible for the medical bills, up to whatever limit you have selected for your homeowner’s insurance policy.

Finally, with home insurance, is the coverage for additional living expenses.  If your home is uninhabitable because it has been destroyed or because substantial repairs are needed, this type of insurance will cover you renting another place or staying in a hotel for the duration.  You may also receive a daily stipend for food expenses.

It is impossible to make a general statement as to how much homeowner’s insurance you need to purchase, because each situation is different. You need to speak with a home insurance expert, review your assets, and then work with them to request quotes for your homeowner’s insurance.  Contact a home insurance broker to start the process.

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