Home Insurance Basics

home insuranceIf you are a first-time homebuyer, navigating the homeowner’s insurance world can be tricky! You have spent a great deal of money securing the home of your dreams, and now it is time to decide upon the proper protection plan. Due to the fact that the list of concerns to address is nearly endless, we have compiled a list of a few basic pieces of homeowner’s insurance information that will hopefully put your mind at ease:

  • When deciding on how much to insure your home for, you should go with replacement cost over market value. The cost of your home may depreciate over time because it is influenced by market conditions. If this happens and you lose your home, you may not have enough coverage to rebuild your home. Insuring it for replacement cost will cover labor, material, and any other expenses that will contribute to the complete restoration of your house.
  • Where liability is concerned, more is better! A legal battle over liability can cost you thousands of dollars, even if you win! If you lose, we could be talking about millions of dollars never to be seen again. Consider purchasing a personal umbrella insurance policy to have added liability coverage on top of what you purchase with your homeowner’s insurance policy.
  • Do not forget about additional living expenses coverage that could compensate you for a place to live while your home is repaired after a disaster! Otherwise you risk paying thousands of dollars in hotel stays until the project is finished!
  • Make sure to speak to your insurance agent about what will not be covered in your insurance policy.

For additional insurance assistance in Western New York, please contact The Alliance Group of Western New York, Inc., in Fairport!