Home Insurance in Ohio
New homeowners are expected to buy home insurance for their houses from the bank or lending institution, the mortgage companies, as well as the insurance companies. The typical thought is to insure the house for the minimum, so money can be saved. After all, buying a house is a huge undertaking. However, this is a mistake, and Bonvenuto Financial Group LLC in Uniontown, OH is here to tell you why. First, though, new homeowners should know what underinsured means.
What Is Underinsured?
When disaster hits, such as fire, flood, or a violent storm, houses become damaged. Homeowners look to insurance companies for help. If the house is underinsured, homeowners will pay more out of pocket for repairs or replacements.
Let’s say you live in a $200,000 dollar house. Misfortune strikes. Ohio requires the insurance company to pay 80 percent of the cost to rebuild the house. That leaves you paying $40,000 out of pocket. Alternatively, if you’re only insured up to $60,000, then the insurance company will pay for 75 percent of the cost of rebuilding. You’re responsible for the remainder.
How To Avoid Being Underinsured
It’s tempting to save money by buying minimal insurance coverage. Homeowners would benefit from increasing their coverage. Here’s how:
- Ohio offers guaranteed replacement cost policies. This is in addition to home insurance and replaces home loss in its entirety.
- Homeowners should consider reworking their existing home policy to include complete repair or replacement. Your premiums will go up, of course, but you’d be protected in case of a misfortune.
Underinsured Means Home Improvements, Too
Upgrades to your home should be covered by your insurance. To lose all that wonderful work due to being underinsured would be a tragedy. Contact your insurance company in a timely manner to obtain the right coverage.
Get A Quote
Your home is the biggest investment you’ll ever make. Don’t worry about being underinsured, because Bonvenuto Financial Group LLC in Uniontown, OH will help you. Just give us a call or drop by, and we’ll get the ball rolling.