Home Insurance – Fair & Yeager Insurance – Natick, Sherborn, Dover, Wayland, MA, Metrowest

because many mortgage companies will not allow you to exceed a ,000 deductible, so check with your lender before opting for a higher deductible.

 

How Much Insurance Do You Need?

Most agents use a cost estimator to figure cost replacement estimates. This will ensure that your home is insured for the correct amount. Insurance companies do not insure dirt. If you buy a home that includes a large lot, do not be astonished when you receive an insurance policy for a lot less than what you paid for the home. This is because you are buying coverage for the home and not the land.

In the past, replacement coverage was called Guaranteed Replacement Cost. There is no such coverage anymore. Today it is Replacement Cost Coverage, which means each insurance company designates a percentage of additional coverage on top of the insured amount. This is designed to protect the homeowner who has suffered a loss from having to pay additional construction costs to rebuild. It can cost more to build because of inflation or simply because material prices have increased. For example, if the dwelling coverage is insured for 0,000, and the company has 125% replacement cost coverage, the homeowner would receive an additional ,000.

I recommend 200% replacement cost coverage, which gives homeowners double the coverage.

 

Policy Options

You have other choices on your home insurance policy that you can tailor. Liability