What Insurance Will Help You If You Have A House Fire
Two of the most common and costly home insurance claims are for lightning and fire damage, with 35% of home insurance claims falling into that category. That is why you want to make sure that you are well prepared for a worst-case scenario where you have a house fire. When the time comes to select your home insurance policy, you'll definitely want to keep the following things in mind.
How Much Dwelling Coverage Do You Have?
A common mistake that people make when they shop for home insurance is assuming that the cost of their home is the cost to rebuild it. This is not necessarily the case, which can cause people to be underinsured. You need to look at what the total cost would be to build your home if it were to burn down to the ground. Dwelling coverage is going to cover the home's structure, roof, and foundation, as well as all appliances and fixtures that are built into the home itself. This includes your furnace, air conditioner, bathtubs, sinks, and things of that nature.
Your insurance agent can determine how much dwelling coverage you need based on your appraisal, which will give an estimate of how much your home would actually cost to build. Your insurance agent is going to then give you an estimate for coverage that goes beyond that estimate so that you are well protected.
While insurance rates also go up each year, it is for a good reason. Your insurance provider factors in the cost of inflation and what that means in terms of building materials and labor. If you don't factor in the cost of inflation, a home insurance policy may not have enough coverage 20 years later to rebuild the home.
How Much Personal Property Coverage Do You Have?
The next largest expense with a house fire will be your personal property losses. A good personal property coverage policy is going to pay for the replacement of your damaged items with a similar item that can be bought brand new today. You should also receive a depreciated value for items that you do not want to replace.
In addition, your personal property coverage should also be paying for the cleaning or repair of items that are damaged in your home due to a house fire. This will require the help of a fire damage restoration company that will help remove stains and smoke odors from items so that they are returned to you just as they were before the fire. If an item cannot be cleaned, the personal property coverage should then replace the damaged item with a new one.
Contact a professional to learn more about home insurance.