If you really think you know what you are doing when buying homeowners insurance (chances are you don't), then this quiz should be a breeze.
The price of the land does not factor into how much insurance will cover. Only replacement costs for structures on the land, along with your possessions will influence the price.
The cost of rebuilding could be more, or less, than the price you paid for it, or the price you can sell it for today.
To quickly figure out the amount of insurance you need, multiply the average cost per square foot in your community by the total square footage of your house.
Not only does the style of your house, such as a ranch or colonial, impact the cost of rebuilding, but the number of rooms will also figure into the mix.
Homeowners have to buy special flood insurance provided by the federal government for flood damage.
Typical policies will cover water damage from burst pipes or leaky faucets, but not surface water flooding.
Most policies pay for the repair or replacement of damaged property.
Replacement cost coverage allows you to replace your insured personal property for what it would cost to buy them new.
If your house is insured for $100,000, you should be insured for up to $70,000 worth of personal property coverage.
Most companies won’t even insure a home with trampoline.
After a major disaster, contractors are in high demand, pushing the cost of rebuilding up.
Most won’t pay for the extra expense, however, you can add on a special “endorsement” to your policy that covers a specified amount toward these costs.
Use photographs and videos to help you compile an adequate list.
Insurance companies differ, but some won’t pay to replace special features such as antique wall and ceiling moldings.
You should do this if you want to replace the large structure with a smaller one.
Most policies have limits on such things as jewelry. However, you can insure very expensive items with special coverage.
Most policies will pay your living expenses for so called “loss of use” after a disaster.
You should buy extra coverage if you have investments and savings that are worth more than your policy’s liability limits.
The more coverage you have with one company, the less money you will pay.
Insurance companies like it when you want to share more of the burden. The more money you pay, the more money you'll save.