As an expert in home insurance, we will advise you to look for a home insurance policy that gives you the most coverage, if you can afford it. Think of the cost of rebuilding your home and replacing your belongings. Any insurance that covers all these should be ideal for you. At Calhoun Risk Management in Minneapolis, MN, we offer three basic levels of home insurance coverage.
Actual cash value
This level of coverage will only cover the current value of your house and the current value of your belonging after deducting depreciation. If you bought your set of furniture two years ago at $250, its value would have depreciated. So, if the set of furniture is now valued at $170 after deducting depreciation, for this level of coverage, we will pay you $170 and not $250 for the destruction of that set of furniture.
For this level of coverage, we will pay you the cash value of your home and the actual amount you paid for your possessions without any deduction. With the settlement, you should be able to rebuild your home to the original level and you should also be able to repair or replace your damaged belongings. However, this level of coverage will cost you more than the one above.
Guaranteed replacement cost
This coverage level is also known as the extended replacement cost. This is the best level of coverage. For this policy, we will pay you the actual amount it will cost you to rebuild your home and it is usually more than your policy limit. We have paid clients an amount that is about 20% higher than the limit of their policy.
As far as we’re concerned, this is the best home insurance policy for everyone. Of course, it is the most expensive. But this is what you should consider when it comes to home insurance. The less you pay, the more risk you will bear and the less risk we will bear. If you pay more, you’ll bear little or no risk, and you will leave us with most of the risks.
Why not consult us at Calhoun Risk Management in Minneapolis, MN for guidance in purchasing a new home insurance or in reviewing your existing insurance policy.