Expert Advice When You Need It Most

Insuring Your Home

Written by: Fred S. Steingold

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Posted over 2 years ago. 0 helpful votes, 0 comments

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How does my homeowner's insurance help me?

Basically, it protects you from two risks: First, the risk of having your home damaged or destroyed by fire or other peril. Second, the risk that someone gets injured on your property and sues you.

Any suggestions about the property damage part?

Make sure you have enough insurance to pay for rebuilding your home if it burns down. Construction costs tend to increase. Check now and then to see what it would cost to rebuild your home. Increase your insurance if it's not adequate. And make sure the coverage for the contents of your home -- your furniture, computers, and other personal belongings -- is also sufficient.

What about my liability coverage?

You want enough insurance to cover a judgment against you if someone gets hurt due to your negligence. Verdicts can run into six or even seven figures. The more coverage you have, the greater your peace of mind. Consider buying an umbrella policy that kicks in after your homeowner's coverage is used up.

I sometimes conduct business from my home. Will my homeowner's coverage be sufficient?

Maybe not. Tell your insurance agent about your business activities. You may need a special rider to protect you if your business equipment is damaged or stolen, or if a customer or client is injured at your home.