Your home is most likely the biggest financial investment that you’ll ever make. As such, you’ll need an insurance policy which will fully protect that investment. But all homeowner insurance policies aren’t created equally. Some things to consider when shopping for home insurance include the following:

• Actual Cash Value (ACV) coverage offers the least amount of protection. ACV policies cover the cost of your house and the cost of your belongings in the house after deducting depreciation. The depreciation clause is important as it only provides the value of the structures and items at the time of the loss rather than at the time of the purchase. So, depending on the amount of depreciation assessed, it might be difficult to get back to a pre-loss condition without some out-of-pocket expenses.
• Replacement Cost will pay to replace your home up to the limits listed on the policy, sometimes more.
• A standard homeowner insurance policy will cover the dwelling, the personal property within the dwelling, and personal liability in the event that someone has an accident or is injured while at your home. But there are additional coverages called riders or endorsements that should also be considered. These endorsements to your standard home insurance policy extend the coverage for certain types of property or peril. A jewelry rider is a common example. Oftentimes the base policy will set a limit on the amount of personal property that will be reimbursed from a loss. A rider can be purchased if the value of your jewelry exceeds the personal property limits of the base policy.

The best way to determine what type of insurance you should purchase and which riders you should consider is to ask a licensed agent in our office. We can assist you with assessing your home insurance needs.