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Get DirectionsAlthough homeowner’s insurance isn’t required by law like auto insurance, mortgage companies often require it for those who have loans. Green Valley, AZ, Insurance Center of Green Valley recommends keeping a homeowner’s policy on the house even if the home is paid off to protect the owner’s asset. However, not every person requires the highest level of coverage, and sometimes the cheapest policy just isn’t enough.
1. Structure Home
One vital aspect of deciding on an amount revolves around what it would take to build a new house similar in structure and design. For instance, local construction costs and the square footage of the place will play a part. What the home is built of as well as the style of the home determines how much it would cost to rebuild. The number of rooms, especially bathrooms, in addition to any special features like fireplaces and arched windows affect the rebuilding price. A homeowner should keep in mind if any areas were custom built.
2. Whether Extras Are Needed
A person should consider whether extras not covered on a standard policy are beneficial. For instance, a homeowner who lives on a flat area or at the bottom of a hill may want to consider adding flood insurance.
3. Personal Possessions
An insurance policy doesn’t just cover the cost of the structure of the home itself and the sheds and other buildings outside. The policy covers possessions, so a person should take that into consideration when tailoring the policy. This is especially the case if the homeowner owns anything of value. A person should craft a list of all possessions in the home and how much it would cost to replace them. A person can expect 50 to 70 percent of the total valued to be covered on policy.