Real Estate
Getting the Homeowner's Insurance You Need
By Dan Smith

GETTING THE HOMEOWNER’S INSURANCE YOU NEED

Homeowner’s insurance is often purchased in haste and needed only when a rare calamity strikes. It is easy either to over- or under-insure and go for years unaware of the improper coverage.

To get the proper coverage, start by determining as precisely as possible the true value of your home and its contents. You can reasonably arrive at an approximate replacement cost (the amount you want to insure) by taking some measurements and doing your homework on local building costs. You might also call the Realtor you originally worked with when buying the house and pick their brain on current values. The next step is to prepare an inventory of your personal property and contents of your home. Here again you should check with your insurance agent and see if you are covered for replacement cost of these items, or their depreciated value. Otherwise you may be in for a shock should you experience a loss due to theft or fire. I would also suggest you use a video camera and walk through your home filming the contents. Keep the tape/disc at your office or in a safety deposit box for safe keeping. Having experienced a burglary first hand, I can tell you that it is very difficult to come up with an inventory and approximate value after the fact.

After calculating you’re your insurance needs, take some time and go over your policy with your insurance agent. Most of the major insurance companies offer substantial discounts, for clients that have their home and auto insurance with the same provider. If you are shopping for the first time, get answers to the following questions: How does the insurer rate in customer satisfaction? What special features or limitations does their policy have? Does you policy include “replacement cost” coverage of the home and contents?  Shopping for insurance can be a tedious task, but taking the time and effort now can save you thousands of dollars later.

For professional help on this or any other aspect of home finance, call the expert! Dan Smith can be reached at 303-674-0201 or visit him at www.ColoradoHomeLoans.com