The Ins & Outs of Homeowners Insurance
Insuring your home is vital and you should definitely know the ins and out of homeowners insurance. If you are getting a mortgage to purchase a home, then legally you have to have homeowners insurance, but if you aren't, as a real estate agent at the Lake of the Ozarks, I still recommend having it to ensure peace of mind.
There are 3 ways to insure the structure of your home:
1. Replacement Cost
This will cover the cost of replacing the damaged property without deduction for depreciation, but up to a limited dollar amount.
2. Extended Replacement Cost
This will cover costs up to a certain percentage over the limit, usually 20%. This is good to have especially, for example, a sudden increase in construction costs.
3. Actual Cash Value
This cover the cost to replace your home, except for the depreciation costs. For example, if you have a roof expectancy of 20 years but its 15 years old, the cost replace it today will be much more expensive compared to its actual cash value.
There are 2 ways to insure your belongings:
1. Replacement Cost Coverage
Replacement cost coverage is insurance that will pay the dollar amount needed to replace the damaged personal property with items of likeness or quality with our depreciation deduction.
2. Actual Cash Value
Actual Cash Value is insurance that covers your belonging, minus depreciation. Unless you specify the replacement value, your property will be covered at its actual cash value.
I can't stress enough, know what your home insurance actually covers. You don't want to be in a dire situation and think you are covered for it, but you're not. For example, if your house is suddenly flooded, that would be a terrible situation, but if your home insurance policy has floor insurance as a coverage you're better off. Your home insurance will typically cover damage or unexpected losses including:
Insuring the Structure of Your Home
There are 3 ways to insure the structure of your home:
1. Replacement Cost
This will cover the cost of replacing the damaged property without deduction for depreciation, but up to a limited dollar amount.
2. Extended Replacement Cost
This will cover costs up to a certain percentage over the limit, usually 20%. This is good to have especially, for example, a sudden increase in construction costs.
3. Actual Cash Value
This cover the cost to replace your home, except for the depreciation costs. For example, if you have a roof expectancy of 20 years but its 15 years old, the cost replace it today will be much more expensive compared to its actual cash value.
Insuring Your Belongings
1. Replacement Cost Coverage
Replacement cost coverage is insurance that will pay the dollar amount needed to replace the damaged personal property with items of likeness or quality with our depreciation deduction.
2. Actual Cash Value
Actual Cash Value is insurance that covers your belonging, minus depreciation. Unless you specify the replacement value, your property will be covered at its actual cash value.
Know What Your Home Insurance Covers
I can't stress enough, know what your home insurance actually covers. You don't want to be in a dire situation and think you are covered for it, but you're not. For example, if your house is suddenly flooded, that would be a terrible situation, but if your home insurance policy has floor insurance as a coverage you're better off. Your home insurance will typically cover damage or unexpected losses including:
- fire
- windstorm
- hail
- water damage (excluding flooding)
- riots
- explosion
- theft
- the extra cost of living somewhere else while your home is being repaired or rebuilt
As a real estate agent at the Lake of the Ozarks, I'm happy to give advice on how to go about getting your homeowners insurance. I sell homes for a living, but I will all of my clients the best of luck even after they have bought the home. Ensure that you have peace of mind and purchase homeowners insurance. I'd hate for you to finally have your dream home at the Lake of the Ozarks and something terrible and unexpected to happen to it and you not be covered. I will help you understand your needs and be an active listener in every circumstance of purchasing your home. I will treat you as a valued friend and stay in touch with you as you enjoy your dream home. Call my office today for real estate advice at 573-693-1300.
Judi Cloyd, Pinnacle Real Estate Partners
5780 Osage Beach Pkwy Ste 112
Osage Beach, MO 65065
Mon-Fri 8:00-5:00
Weekends by Appointment
573-480-7376 : Judi@JudiAtTheLake.com
Comments
Post a Comment