If you are looking for a homeowners insurance calculator, there are some questions you need to answer before plugging in the numbers.
The first homeowners insurance calculator question is how much will it cost to rebuild your home if it was completely destroyed.
Remember, bad things happen.
Your home could burn down in a fire taking with it all your possessions.
You could be hit by a tornado destroying not only the house but all of the outbuildings and fences.
Take all of this into consideration.
You need this much protection to recoup your losses if the worst thing happens.
Next, you need to figure out how much it would cost to replace the contents of your home.
Let's say the home itself isn't destroyed but you are cleaned out by a burglar.
What would you do? How would you want to be protected? Keep in mind that there are two types of insurance for possessions.
One is replacement value and the other is actual value.
If you bought a couch for $900 would you want to be able to purchase another $900 couch or would you be satisfied with the actual value (what you could sell the couch for on Craigslist)? Remember, actual value policies tend to be quite a bit cheaper, but you'll be re-furnishing your home from garage sales if something were to happen.
Next, you will want to decide how much you can set aside to cover a deductible.
This is the amount you have to pay before the insurance kicks in.
If you get a high deductible, you'll pay a lower amount each year in insurance premiums.
Finally, you need to decide if you need additional coverage.
National Flood Insurance is recommended for all homeowners.
Other kinds of insurance includes earthquake insurance in California and hurricane protection in hurricane prone states.
So those are some of the things you need to know before using a homeowners insurance calculator.
The first homeowners insurance calculator question is how much will it cost to rebuild your home if it was completely destroyed.
Remember, bad things happen.
Your home could burn down in a fire taking with it all your possessions.
You could be hit by a tornado destroying not only the house but all of the outbuildings and fences.
Take all of this into consideration.
You need this much protection to recoup your losses if the worst thing happens.
Next, you need to figure out how much it would cost to replace the contents of your home.
Let's say the home itself isn't destroyed but you are cleaned out by a burglar.
What would you do? How would you want to be protected? Keep in mind that there are two types of insurance for possessions.
One is replacement value and the other is actual value.
If you bought a couch for $900 would you want to be able to purchase another $900 couch or would you be satisfied with the actual value (what you could sell the couch for on Craigslist)? Remember, actual value policies tend to be quite a bit cheaper, but you'll be re-furnishing your home from garage sales if something were to happen.
Next, you will want to decide how much you can set aside to cover a deductible.
This is the amount you have to pay before the insurance kicks in.
If you get a high deductible, you'll pay a lower amount each year in insurance premiums.
Finally, you need to decide if you need additional coverage.
National Flood Insurance is recommended for all homeowners.
Other kinds of insurance includes earthquake insurance in California and hurricane protection in hurricane prone states.
So those are some of the things you need to know before using a homeowners insurance calculator.
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