What’s the biggest investment of your life? For most Americans, their home is the largest and most important purchase they’ll ever make. Considering the time, effort, planning, and finances that go into a new home purchase and the long term upkeep and home improvements, it’s amazing how little time Americans spend choosing a good home insurance policy. Ultimately you’re home is your responsibility, whether it’s a shoebox-sized apartment or a country estate; it’s well worth it for you to not only have homeowners insurance, but to have a great policy.
The basic function of insurance is to protect your investment. The essential question to ask yourself: What happens if my home is damaged or destroyed in a disaster? Even if you feel you’re on top of your policy, you may be surprised to learn you’re in fact paying too much, or that you’re exposed to unnecessary risk due to coverage gaps. For example: Are you covered for hotel or lodging expenses if you have to vacate your home for an extended period of time? If your house is destroyed, will your insurance pay you enough to rebuild it from scratch, or will you only be reimbursed the purchase price of a similar house on your street?
For answers to these questions and more, The Simple Dollar’s Guide to Homeowners Insurance is designed to educate and inform both new homebuyers and the homeowners who already have a policy but want to cut down on premiums, get fuller coverage or refresh themselves on how the insurance business works.