How Do You Figure How Much Home Insurance You Need?

All homeowners should have home insurance, but knowing exactly how much insurance to purchase may be confusing for some. There are a few rules of thumb to follow that can help you may a smart decision, however, you should consult an experienced insurance agent before making a decision.

How Much Is Enough

Generally, people wanting to purchase home insurance should take the total cost to build their home and factor in the value of the contents. If you have outside structures you should also factor the value of the structure and the contents if the insurance policy covers additions and external building. Once you have a figure, you should round up to the next available amount of coverage. You can choose from actual value or replacement cost insurance. The actual value insurance policy covers the value of the property at the time of the insurance purchase minus depreciation. The replacement cost insurance policy will cover the cost to replace covered items at the time of the covered event based on the fair market value of materials and labor.

Get Quality Insurance

Make sure you purchase quality insurance for your home. Do business with an insurance company that cares about their customers and will help you every step of the way from purchasing the policy to filing a claim. If you own a home in or around Burlington, NC, you should consult Don Allred Insurance for help finding the right policy.

Residents living in Burlington, NC and the surrounding areas can count on Don Allred Insurance to help them get the coverage they need to protect their home and their belongings. For more information call or stop by to speak to a helpful representative today.