Homeowners Insurance Rhode Island
Are you confused about how much Homeowners insurance you need in Rhode Island. Well, you are certainly not alone, many people do not understand how much coverage they need. There is no simple answer to this question, because there are many factors that we assess before determining how much coverage every client should obtain. Watch as our insurance experts Nate Green and Brenda Loiselle-Duclos explain.
The first thing to consider, and what it really comes down to, is how much would it cost to replace your home. This confuses people because it isn’t the same as the market value of your home or the tax assessment amount. It is the actual amount it would cost to rebuild your home as-is. So the replacement cost depends on: size, style, and quality of construction of your home. The replacement cost includes the labor and materials needed to reconstruct the house. It is important to note the replacement cost does not usually include the cost of the foundation since that usually remains standing after a loss. However, you do want to include debris removal and your replacement cost because in the event of a fire or disaster, you will have to remove debris and sometimes the remaining structure in order to rebuild.
The types of things inside your home can be just as valuable as the structure. So it is important that you assess the value of your personal items properly.
We often encourage our clients to make an inventory of their personal items.
A list of things in your home and the value is helpful to determine how much homeowners insurance you should have. Most homeowners policies include personal property coverage (for the belongings in your home) equal to 50-70% of your home’s replacement cost or the dwelling value on your policy. However, there are limitations for some high valued items including but not limited to jewelry, furs, guns, musical instruments, and fine art. If you have items of high value such as these, you should specifically discuss them with your insurance agent.
We usually encourage people to include at least $500,000 in liability coverage on their homeowners insurance. However, depending on your assets we may actually recommend up to a million dollars in coverage or a personal umbrella policy.
As you can see there is no simple answer to this question, because many factors go into determining how much coverage you should have. That is why we review every client’s policy individually to ensure the best coverage for their needs. If you have any questions or are interested in an insurance review, give us a call, we are always happy to help!
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