WalletRehab - Ways to save money

For any homeowner, the best way to protect their investment is with homeowner’s insurance. Homeowner’s insurance covers the costs associated with rebuilding the home in the case of destruction or damage, liability, etc.

The basic coverage in homeowner’s insurance involves the size of your home and the cost to repair or rebuild in the event of ruin or damage. This is known as structural coverage, and to find rebuilding cost, multiply the square footage by the square-foot building cost. Insurers value the square-foot building cost by the average in your area, so check with a local contractor or similar to get an accurate estimate.

Liability coverage is another key factor to homeowner’s insurance. Liability covers the costs involved if you have damaged someone else’s property. At the same time, liability coverage also protects you by covering legal fees in the event of a lawsuit.

Personal property coverage is perhaps the second most important protection short of structural coverage. This insurance covers anything not part of the house itself, such as electronics, furniture, etc. To determine the amount you need, take a thorough inventory of your possessions and add up the values. However, in some cases you may need to add on separate coverage for high-value items such as jewelry, furs, and art.

When shopping for homeowner’s insurance, always take out the highest deductable possible, and ask about every discount. The best way to get a deal is by comparing online. Between multiple insurance agencies, it is not uncommon for rates to vary by hundreds or even thousands of dollars.