Protecting your Real Estate- All About Homeowners Insurance

over-insuring your home can result in major money wastes. Guaranteed replacement cost coverage provides the widest range of coverage available if the home is insured 100 percent of the cost to replace the structure. The entire structure must be replaced at the insurance owner’s expense with guaranteed replacement cost coverage. This applies even if the cost to rebuild is more expensive than the coverage amount. Without this type of important coverage the insurance company will pay up to the coverage amount, even if the price to rebuild is higher. Also look out for policies that offer guaranteed replacement cost coverage but put a cap on the amount of a single loss.

By selecting a policy with a high insurance deductible you can save a significant amount of money. The amount of savings by opting for a 0 or ,000 deductible over a 0 deductible will vary from one company to the next.

If you are paying all cash for your home, it is strongly advised that you insure your property for its replacement value at the close of escrow. All buyers who take out a loan are required to insure the home with a fire insurance policy that names the lender as the loss payee.

You also should consider adequate personal property coverage to protect yourself against the loss of your personal belongings. In addition to personal property coverage, you should consider liability coverage to protect against claims for injury or damage to

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