5 Things to Know about Home Insurance

Homeownership is part of the American dream. If you own a home (or are about to own a home) and are living your part of the American dream in and around Ashland, KY, you will need to purchase home insurance to keep your investment safe against a potential future loss.

According to Sharp Insurance & Financial Services, homeowners in need of home insurance are advised to ponder these five essential insurance considerations before making a final decision.

  • Purchase insurance you need.

Homeowners’ policies for homes located in the vicinity of Ashland, KY should include coverage for the structure, the owner’s belongings, the owner’s liability/risk, and living expenses during a rebuild.

  • Consider replacement value insurance. 

Without replacement value coverage, possessions, for insurance reimbursement purposes, would be equal to fair market value. This means that without replacement value insurance, an insured will likely not be able to replace everything that was lost, given today’s cost.

  • Consider extended or guaranteed-replacement-value coverage.

Guaranteed replacement covers rebuilding despite cost; however, most companies now offer extended-replacement-value insurance coverage, which adds a preset overage to mitigate inflation.

  • Purchase Policy Endorsements, aka Floaters. 

Floaters are policy endorsements that can be added to a homeowner’s policy to cover big-ticket items that would otherwise not be covered. Homeowners are advised to hold onto to big-ticket receipts, or fax copies to their insurance agents. This ensures a big-ticket’s value will never be disputed in the case of a loss. 

  • Select a policy that maintains pace with inflation. 

Insurance policies can offer homeowners an option that allows the homeowner’s insurance coverage to keep pace with inflation. Inflation is the economic force that drives home prices (and everything else), higher over time. 

The insurance professionals at Sharp Insurance & Financial Services are available now to meet your home insurance needs. Contact us today.