Customizing Your Policy: Things To Discuss With Your Home Insurance Agent

Home insurance is one of those necessary evils. It's not something people like to think about, but it's important to have in case something bad happens.

The good news is that home insurance doesn't have to be one size fits all. You can work with your insurance agent to tailor a policy that meets your specific needs. Not sure where to start? Here are three things to discuss with your agent if you want to customize your home insurance policy. 

Your Home's Replacement Value 

You'll need to figure out how much it would cost to replace your home if it were destroyed. This value should be the basis for how much coverage you purchase. The amount is different from the market value of your home, which takes into account the value of the land your home is built on and any improvements you've made over the years.

Replacing your home from scratch would obviously be much more expensive, so it's important to have an accurate estimate of this number before you start talking to insurance agents. They will likely have their own formula for calculating replacement value, so it's important to understand this process and ask questions if needed.

Also, be sure to update your policy regularly to account for any changes in your home's value, such as remodeling or room additions.

Types of Coverage You Need

Several types of coverage are available under a typical home insurance policy, including personal property coverage, medical payments coverage, liability coverage, and dwelling coverage.

Dwelling coverage will cover the structure of your home, and personal property coverage will cover the contents inside. Liability coverage provides protection in case someone is injured on your property, and medical payments coverage covers medical expenses for anyone injured on your property regardless of fault.

You might not need all of these types of coverage, or you might need more or less depending on your individual circumstances. Work with your agent to figure out which coverages make sense for you and how much coverage you should get for each one.

Discounts You Might Be Eligible For

Did you know that there are a ton of different discounts available when you're shopping for home insurance? You might get discounts for installing security features like smoke detectors and burglar alarms, being claim-free for a certain number of years, and bundling your home insurance with other types of insurance like auto insurance.

These discounts typically take into account the likelihood of making a claim, so the more you can do to reduce that risk, the lower your premiums will be. Be sure to ask about any potential discounts so you can save as much money as possible on your premium. 

To find out more, contact a company like LH Griffith and Company.