How to Choose the Right Home Insurance Policy for Your Needs

Home insurance isn’t just a box to check; it’s a way to prepare for the unexpected. If you’re shopping for a new policy or reviewing one you’ve had for years, here are a few things to focus on when ensuring your coverage meets your current needs.

Start with the Right Dwelling Coverage

The most important part of any homeowners policy is the dwelling coverage, which helps with rebuilding or repairing your home after a covered loss. This limit should reflect the cost to rebuild your home, not its current market value. In places like Indianapolis, where construction costs can shift over time, it’s helpful to base this figure on local labor and material rates.

If you’ve renovated your home, added square footage, or made upgrades, be sure to account for those changes. Your agent can help you estimate an appropriate limit based on updated information.

Consider What’s Inside Your Home

Personal property coverage applies to your belongings, like furniture, appliances, electronics, and clothing. Most policies offer either actual cash value or replacement cost coverage, so it’s worth understanding the difference. Replacement cost coverage generally results in a higher payout if you need to replace damaged items, though it may cost a bit more up front.

Take inventory of your belongings, especially high-value items like jewelry, instruments, or collectibles. Some categories have set limits within a standard policy and may need to be scheduled separately for full coverage.

Don’t Forget Liability and Living Expenses

Your policy should also include personal liability coverage. This helps if someone is injured on your property or if you accidentally cause damage to someone else’s property. Choosing limits that reflect your financial situation can offer more support if a legal issue arises.

Also look at what’s available for additional living expenses. If your home becomes temporarily unlivable after a covered loss, this coverage may help with hotel costs and other temporary arrangements.

Learn More

Betzy Insurance LLC can help you compare coverage options and choose a home insurance policy that fits your goals. Contact us at our Indianapolis office today to talk through your needs and get a closer look at the right fit for your property.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.