Milwaukee home insurance shoppers usually look for the best possible rates to protect their homes, which in this economy is totally understandable.
Nevertheless, the old “you get what you paid for” saying is never truer than when buying home insurance. Homeowners should always be careful not to settle for a lower rate at the expense of adequate coverage for their homes.
How much homeowners insurance is really needed depends on each situation, but Milwaukee home insurance agents have some information for you to consider:
Dwelling coverage is the portion of a homeowner´s insurance policy that covers the cost of repairing or rebuilding your home in the event that is damaged or lost in a covered peril such as wind, hail, lightning or fire. Separate policies are needed for damages and losses caused by earthquake and flood insurance, as these are usually not covered under standard home insurance policies.
However, there are limits established on each policy for how much the Milwaukee home insurance company is required to pay in the event of a total home loss. These limits must be equal to the current replacement value of the house for the home owner to be properly insured.
This means that if a home was completely destroyed in a covered peril and needs to be rebuilt from the ground up, it has to be insured for its full value to replace it in its entirety. Of course, if the cost to replace the destroyed domicile is higher than what it was originally insured for, the homeowner will be stuck with the additional cost.
For these cases, a policy with guaranteed replacement cost coverage assures that as long as a home is insured up to its full value when a policy is purchased, the insurance company will pay the full value to replace the home even if the dwelling coverage limit is lower than the replacement cost at the event of a total loss.
Content coverage protects personal possessions inside of the home against covered perils and includes things like furniture, clothing, electronics and other items. Typically, this coverage limit is provided as a percentage of the dwelling coverage and should not be lowered. Usually, the contents coverage is set at 70 percent of the dwelling coverage, but this all depends on each scenario.
Milwaukee home insurance agents also recommend having an additional premium for high-value specific items such as jewelry or fine art collections.
Personal liability coverage is often one of the most undervalued portions of a policy until, of course, it becomes needed. Typically, the minimum amount of personal liability coverage that a homeowner can have on their policy is $100,000, although many Milwaukee home insurance agents these days recommend against carrying minimum liability limits. Some agencies will not offer less than $300,000 in liability coverage policies, because they are certain that in the event of a lawsuit, $100,000 will not be enough.
It’s important for insurance clients to know that when it comes to their homes there is no such thing as minimum protection, and that opting for lower coverage does not necessarily mean that you will be saving money in the long run. If you have any doubts contact your insurance provider and ask them about the policy that best fits your specific situation.