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Why Do I Need Homeowners Insurnace? Clovis NM

The home insurance policies which apply to your situation are: HO-1, HO-2, HO-3, and HO-8. The most popular home insurance policy is the HO-3 policy, which will cover you for all the commonly named perils. Note that if you own a multi-family home you might consider the HO-3 coverage with a special endorsement to cover you in case of renter-caused damage to your property.

Kinney Agency Llc
(505) 262-2621
320 Osuna Rd
ALBUQUERQUE, NM
Services
Homeowners Insurance

Daniels Ins Agcy Inc
(575) 766-9676
320 Gold Ave SW Ste 700
ALBUQUERQUE, NM
Services
Homeowners Insurance

Allstate Insurance - Joe Keller
(505) 898-8565
6321 Riverside Plaza Lane Nw Ste A
ALBUQUERQUE, NM
Services
Homeowners Insurance

Brooke Insurance & Financial Svc. Bob McGonigle CIC
(505) 523-1100
156 Wyatt Drive # 5
LAS CRUCES, NM
Services
Homeowners Insurance

Varela Insurance
(505) 982-3839
1907 Saint Michaels Dr
SANTA FE, NM
Services
Homeowners Insurance

Discount Insurance Agency
(505) 888-0300
6821 Montgomery Boulevard Northeast Suite A
ALBUQUERQUE, NM
Services
Homeowners Insurance

Sue Whitaker Agency
(505) 294-0002
209 Eubank Boulevard Northeast
ALBUQUERQUE, NM
Services
Homeowners Insurance

Allstate Insurance - Dean Chaney
(505) 836-2964
6001 Central Ave Nw
ALBUQUERQUE, NM
Services
Homeowners Insurance

Wells Fargo Insurance
(505) 542-3511
501 Shakespeare St
LORDSBURG, NM
Services
Homeowners Insurance

Cress Insurance
(505) 938-2430
6101 Moon St NE Ste 1000
ALBUQUERQUE, NM
Services
Homeowners Insurance

Why Do I Need Homeowners Insurnace?

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Homeowner Needs

What Home Insurance Covers

Matching your needs to the kinds of policies available can be a challenge. You need to consider the cost of the premiums as well as your ability to tolerate some risk. These are always the main factors you will need to balance out.

However, there are unique needs depending on the type of home you own or rent.

When you own the building, you should have home insurance for the building. In most cases, if you have a mortgage your lender will require this insurance as a condition of lending you the money.

If you are a homeowner, you should consider some level of coverage for the 4 standard components of home insurance:

  1. structure
  2. contents
  3. liability
  4. living expenses

The home insurance policies which apply to your situation are: HO-1, HO-2, HO-3, and HO-8. The most popular home insurance policy is the HO-3 policy, which will cover you for all the commonly named perils. Note that if you own a multi-family home you might consider the HO-3 coverage with a special endorsement to cover you in case of renter-caused damage to your property.

Let's start with the structure. You will need enough home insurance to rebuild your home. Keep in mind that your estimate should be at current construction costs - not the original cost to build. Also, you might have to consider rebuilding with less-expensive materials. This is often the case when you have owned an older home.

You can come to a quick estimate in a number of ways. You can have your home appraised. You can also get an appraisal from a real estate agent and then subtract the cost of the building lot. However, neither of these approaches will give you an actual construction cost estimate.

You can also take the square footage of your home and multiply it by the average building cost per square foot. However, average cost per square foot will not include special finishings.

Your policy will not cover you in the case of damage because you didn...

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