What important things should I consider when shopping for home insurance?

I'm insurance shopping for myself and my elderly mom, since we're each buying our own property. What should I be aware of while looking for coverage?

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Jackie Whalen
Answered on Feb 25, 2021
There are many homeowners insurance companies out there to choose from. How do you know which company to choose? You want to get a good price for your policy, but the cheapest coverage is not always the best.
First off, your homeowners policy should have replacement cost rather than actual cash value. Replacement cost means that your personal belongings, like furniture and clothes, will be replaced with brand-new items without taking into account any depreciation.
You also want to make sure that your coverage is enough to completely rebuild your home if a major catastrophe strikes. For example, let’s say your home is completely destroyed by a hurricane and it will cost $200,000 to rebuild it from the ground up. If your policy only has coverage for $100,000, then you will have to find another $100,000 in order to finish rebuilding your home.
There are other options you may want to look into, such as water/sewer backup or equipment breakdown coverage, but the main things to keep in mind are obtaining replacement cost coverage for your personal property and making sure you have enough coverage for the complete rebuild of your home.
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