What would happen if your home was damaged or broken into? Average insurance claims range from about $3,600 for theft to over $37,000 for fire or lightning damage, according to ISO, an insurance industry analytics company. When you’re making decisions about your home insurance coverage, the Pennsylvania Institute of Certified Public Accountants recommends keeping this advice in mind.
It’s smart to shop around
Even if your mortgage lender recommends an insurer, you may want to consider checking out three to five other companies’ premiums to be sure you get the best deal. Read the policies carefully to confirm that they are comparable, and be sure the seemingly less expensive options provide all the coverage you need. Compare their prices and, if available, consumer reviews. There may be considerable price differences, for example, between policies that offer replacement value (which covers the expense of rebuilding a similar home or replacing your possessions at current prices) and actual cost value (which reimburses you what it will take to replace your home after subtracting depreciation).
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