July 25, 2017

What to Know About Homeowner’s Insurance Policies

  1. Knowledge is key to proper coverage: square footage, year built, # and quality of kitchens and bathrooms, custom features.
  2. You need to insure the replacement value, not market value.
  3. Adding extended limits (120% of replacement cost) is crucial. If the replacement cost is $351,204 and the extended limits is 120%, the insurance company will pay up to $421,444 to rebuild, (120% of $351,205 = $421,444).
  4. Building code coverage is very important. If your home has to be rebuilt, you must to the current building codes.
  5. Replacement cost on all personal property means if your property is stolen or destroyed, you will get the full replacement cost for those items, not just actual cash value.
  6. Scheduled Personal Property should be used for jewelry, guns, artwork, etc. This way, if there is a claim, these items will be replaced with no depreciation.
  7. Personal Liability for homes with swimming pools, spas or trampolines should be set at a minimum $300,000, not $100,000.
  8. Water Backup Coverage should be included on all homes. The cost is usually only $50-$80 per year.
  9. Significant improvements to your home should be reported to your insurance agent to insure proper coverage.
  10. Your insurance agent should be more concerned with proper coverage on your home rather than minimizing your premium.

Robert Harris Exclusive Agent / Personal Financial Representative Phone: 480.342.8146 Toll Free: 886.342.8156 Fax: 480.342.8176 14144 N 100th Street, B-115 Centennial Marketplace Scottsdale, AZ 85260-3933

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