When you’ve spent over $300,000 on a home, you’re best advised to purchase high value home insurance in order to protect your property. When you compare insurance for homes that are valued at under $300,000 to high-value home insurance, you’ll see that the coverage limits for high value home insurance are much higher and reflect realistic repair and replacement values for expensive homes. In addition, personal property and liability limits are higher to reflect the probable higher value of personal property and protect homeowners from higher damages claims in the event of lawsuits.
Purchasing High Value Home Insurance
Just like when you purchase any kind of insurance coverage, purchasing high value home insurance requires some research and realistic thinking. Once you’ve decided you need high value home insurance, make sure to set time aside to review the homeowners insurance quotes you’ll be receiving. One of the easiest and most efficient ways to go about requesting quotes is through a respected online comparison site such as AgentInsure, which uses the information you provide through a secure online form to find appropriate policies for you to compare.
When you receive your homeowners insurance quotes, it’s time to look at what exactly is covered and what the limits are per claim. Higher coverage limits are the number one reason any homeowner purchases high value home insurance, so it’s essential that you choose a policy with limits that reflect the realistic costs of repair or replacement of your home or your valuables. If you don’t know how much that should be, speak with an independent consultant such as a realtor or contractor and ask for an estimate. You should also consider choosing a high value home insurance policy with built-in inflation protection. This means that if you insure your home for $500,000 this year, the annual inflation is taken into account with the coverage limits. This protects against devaluation of the dollar and is an extremely useful type of coverage.
Depending on where you live, you may need additional insurance such as earthquake or flood insurance. Again, determine whether the offered limits are sufficient. It’s also helpful to determine whether this type of insurance is realistic for your situation, as the deductible consists of a percentage (usually 15 percent) of the insured value of the home. That means that if your home is insured for $450,000, you will have to pay $67,500 yourself before your insurance coverage picks up the rest of the tab. Only purchase this type of coverage if you are absolutely certain you will be able to pay the deductible in the event of a claim.
Another thing to consider when you compare homeowners insurance is the quality of service you will receive from the insurer. Not all insurance companies are equipped to deal with a high volume of claims, which can result in delays in payment. Other companies don’t process your information quickly enough, don’t get back to you, or aren’t available round the clock. Always contact the Better Business Bureau to find out how other consumers rate an insurer before purchasing a policy with them.
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