A few crucial questions should come to mind when shopping for homeowners insurance in New York. The first question should be: how much homeowners insurance do I need? Another key question is: how much does homeowners insurance cost in N.Y.? Read on and learn the answers to help shape your coverage decisions.
What Standard Homeowners Coverage Provides
Every home is subject to some type of unforeseen disaster, so it’s always wise to have appropriate insurance coverage in place. You certainly wouldn’t want to start all over again and pay for a new home if a storm destroys your existing one. Standard homeowners policies pay for damage caused by fires, lightning, hurricanes, and other natural disasters.
Certain disasters such as floods or earthquakes require a different type of coverage. Another point to keep in mind is that standard policies have limits, which can be raised by customized plans. It all depends on where you live, the type of home you have, and what you’re winning to invest to ensure you always have a roof over your head. Losing your home to a disaster could mean temporarily staying in a hotel while your home is repaired or rebuilt.
Additional Living Expenses (ALE) is a part of standard policies that cover hotel costs and food and other living expenses.
Factors Associated with Rebuilding Costs
Multiple factors define how much your home rebuilding costs will be in the event your home is demolished by a disaster. You can get an approximate idea of the costs by multiplying total square footage by per square foot building costs in your local area. You can find out this information from a local real estate agent. This equation, however, does not include the land value.
Several other issues come into play when determining rebuilding costs, such as how your home is constructed in terms of materials, style, and the number of rooms. Some homes have additional structures, such as garages and sheds, and special features such as fireplaces that increase costs. Custom-built structures and home improvements may also play into higher rebuilding costs.
How Much Does Homeowners Insurance Cost in New York?
Local building codes change over time everywhere, which means they can affect rebuilding costs. Even if your standard insurance policy guarantees a replacement, it may not cover the difference in costs. You can, however, get an Ordinance or Law endorsement to your policy to cover specific costs for getting up-to-date with new codes. Older homes may need a modified replacement cost policy.
Another factor that can affect rebuilding costs is economic inflation. That’s why you should think about adding an inflation guard clause, which provides automatic adjustments that reflect current construction costs. Another option is to purchase a guaranteed replacement cost policy that pays you to restore your home to its original condition.
Protecting Your Personal Possessions
An additional insurance concern is protecting your valuable belongings within the home. Depending on the insurer, most standard homeowners policies cover personal items from 50 to 70 percent. However, you may need additional insurance to cover all valuable older or special items. To be safe, it’s best to make an inventory list of all your belongings and report it to your insurance agent.
Other Considerations
Liability is part of your standard plan, as it protects you from litigation up to $100,000 for bodily injury or property damage caused by you, family members, or pets. For higher limits, you likely need excess liability insurance. One way to buy additional coverage is through an umbrella policy, which usually requires at least $300,000 underlying liability on your standard plan.
Your standard homeowners insurance policy only covers so much. Speaking with a professional insurance agent is important to ensure you have proper coverage for your situation. Contact us at 01 Insurance to learn more about how much homeowners insurance you need for your New York home.