Need to Properly Insure Home More Important than Ever

Home Insurance is More Important than Ever - Get Affordable Home Insurance Quotes Now

The investment you make in your home can quickly go up in smoke or be taken away from you through theft. That is all the more reason for homeowners and renters to be properly insured in tough economic times. If you don’t have insurance on your property and/or valuable belongings, or even if you’re underinsured, it’s more important than ever to get comprehensive home insurance quotes and compare them until you find the best one to fit your needs - and your budget.

As it turns out, however, a large number of Americans demonstrate a knowledge gap in understanding what their home insurance policies actually cover, according to a recent study by Zogby International for MetLife Auto & Home.

The study points out that close to one third (31 percent) of Americans do not know how much their prized assets - their homes - are insured for. Additionally, 46 percent did not know how much coverage they have for their homes' possessions, things like clothing and furniture. Finally, a large number were not aware of coverage overlaps that could exist, thereby leading to opportunities to save money.

As the survey points out, 30 percent of homeowners think their insurance coverage is based on the present market value of their residence. As it turns out, the available coverage limit for homeowners' coverage is based on the cost to rebuild the residence. That mistake could lead to confusion for homeowners' attempting to determine whether they have a sufficient amount of insurance or if they should start shopping around for comprehensive home insurance quotes.

Another piece of information from the survey indicates that greater than two thirds (71 percent) of those surveyed think insurance pays for the entire cost to rebuild their property if there is a major loss, like a fire or other natural disaster.

As it turns out, most insurers "cap' the amount given to rebuild the residence after a total loss, unless added coverage is acquired. Finally, the coverage is subject to a deductible, and certain causes of loss, like water damage resulting from natural disasters of flooding, are excluded entirely.

Nearly three-quarters (73 percent) think insurance will pay the entire cost to replace personal belongings in case of a loss. The reality is that depreciation is typically factored in, unless optional replacement coverage is chosen, and the coverage, regardless of the selected settlement method, is subject to a deductible.

The survey also shows that 60 percent think insurance will pay for the entire cost of replacing valuables, such as jewelry and collectibles. Many insurance policies have a payment cap for replacing valuables; however, added coverage can easily be acquired, and the coverage will be subject to a deductible.

Finally, when it comes to a major loss, close to two-thirds (64 percent) of those surveyed believe their insurance will cover any building code mandated upgrades that are required.

Minus an endorsement/rider, many home insurance policies will not cover required upgrades situated in an undamaged section of the home.

Are these things that you took into consideration when you were shopping for home insurance quotes? Or were you simply looking for cheap insurance options because you were on a tight budget? The truth is, home insurance with the proper coverage is more important than ever because people simply can’t afford major losses in the event of a disaster.

While the number obviously present some concerns when it comes to educating consumers, the study also points out some good things.

Consumers looking for comprehensive home insurance quotes, or with any and all questions regarding their homeowners' insurance needs, should not hesitate to contact an agent so that they can be properly covered.

Consumers with any and all questions regarding their homeowners' insurance needs should not hesitate to contact an agent so that they can be properly covered.